I saw the potential for market-changing news over the weekend, but I did not expect it to be on the vaccine front. Pfizer announced a successful vaccine, and gold is plummeting.
Our cycles supported a turning point in precious metals around November 6th (+/- a few trading days). I assumed it would time a low aligned with our 6-month target. Today’s market action to the vaccine suggests that instead of a low – gold inverted and formed a high overnight. The election fiasco kept gold elevated long enough to force the cycle to invert. Subsequently, gold pushed its 6-month low into the last half of December.
GOLD 4-HOUR: Gold prices plummet after Pfizer announced a vaccine that was reported to be 90% effective. This news event forced an inverted cycle, and we expect an initial collapse to $1810 – $1820 (beginning now).
Updated 6-Month Target: Today’s inverted cycle peak supports a December target surrounding $1750 for an ABC measured correction. At least that is my initial impression, given today’s action. We will know more over the next 48-hours.
After an initial collapse to $1810 – $1820 (beginning now). We could see a 3 to 4-week consolidation followed by and a final drop in the last half of December.
Reference: FX Empire
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