Cycle Bottom Due for Gold

Today's spike upside reversal in gold comes 3-4 weeks prior to my expectation of a cycle bottom. Under normal circumstances such a situation would argue for another loop down to revisit the $1530/25 area in spot gold after this initial recovery rally period.

If something extraordinary is unfolding that sends global equity flows into the last or only perceived safe haven market -- gold -- then perhaps we have to throw the cycle timing work, and any other "normal circumstance," out of the window while gold potentially explodes towards new high territory in a hurry.

Of course, such a situation is definitely an outlier.

See my cycle work below with its implications for ETF traders of the SPDR Gold Shares (GLD).

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