The 2020 high in Gold

This is an update to my previous post on Gold which I made in August. You can access that post here (https://www.dhirubhai.net/posts/panagiotis-papadopoulos-aa089b59_goldprice-marketanalysis-commoditytrading-activity-6696857261907750912-Ec3C/).

In the above analysis, I mentioned that August would be a major turning point and that “it could be time to shake the tree”. The possibility of gold rising sharply into August was already highlighted in my January 2020 update. Gold peaked in August and has been dropping so far by $300 nearly 15%.

I have spent an enormous amount of time studying the cyclical behavior in the markets over the past years. In my analysis I use a number of approaches. The top in August was identified using price and time cycles that blend the highest form of sacred geometry and Gann related cycles from his book “The Tunnel Through the Air”. This geometry is based on the structure of the universe and has defined human creativity and evolution through time. It provides the link between the spiritual and the physical world. The markets have always been reflecting that link. The irrational numbers √2, √5, π, φ and the ‘sacred cut’ are central to this work.

I want to share some thoughts as to why I felt that August was going be an important turning point. The following schematic chart presents the most significant turning points in gold. Gold futures trading begun in 1971, however, from my research I observed that some of the major movements in this market have been defined cyclically by the 1869 gold panic! Therefore, I used this type of presentation in order to include that date in my analysis. The prices on the chart refer to the December pit continuous futures contract. The vertical lines depict price movements. The horizontal lines depict movements in time (‘M’: months, ‘Wk’: weeks, ‘D’: days). ‘MTF’ is Gann’s master time circle and is defined as [8 x 3/7 x √5].

I have left a lot of the geometry out just to keep the chart simple. Key takeaways from this chart:

·    Time cycles from the 1869 panic high have defined the most significant moves in gold and will continue to do so in the future.

·    Cycles of price and time alternate using the geometry identified above. The simplest expression was the major low in 2015 ($1047) where the previous major time unit (ie from the 2008 low to the 2011 previous all-time high) was reflected in price on a 1:1 ratio.

·    The master time cycle and geometric functions of it have been involved in almost every major move in gold.   

·    On the way up from the 2015 low to the current all-time high at $2089, the $1042 and $630 price swings were the largest moves. These price units and their geometric functions will define future key turning points.

·    The August high in gold relates to a very powerful geometry. When gold takes out that high it will explode.  

There are many young and veteran market timers out there who have been doing excellent work. I have no intention to downgrade or disrespect their work. This is just another way to approach the market and should always be used along with other relevant market information.

Disclaimer

The analysis in this article is only for entertainment purposes and does not constitute an investment recommendation or advice.