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The Correction Continues

gold bar on charts and dollar bills

There are no extremes either way in Gold right now, meaning neither extreme overbought or bullish, or vice versa. We’re in no man’s land following the fake breakout and then the breakdown from the bear flag.

gold prices 15 january 2025

Gold Futures

However, the count says we’re falling in wave C or 3, to $2500-$2400 or $2200-$2100 respectively. A break below $2670 and Gold would accelerate to the downside. Nothing short of breaking the recent high at $2735 would turn bullish in Gold.

gold prices 15 january 2025

CFDs on Gold

The slightly bigger picture also tells us little, but for now, the action is bearish until proven otherwise.

 

Silver: Key Levels to Watch

The same goes for Silver: no extremes in either direction to rely upon.

gold prices 15 january 2025

Silver Futures

That said, like Gold, Silver had a fake breakout to the upside, which is typically bearish. It broke down soon after, and with gusto. Assuming wave i of C or 3 has completed at $30.12, I am waiting for the peak of wave ii. However we slice it, the picture is bearish, unless we break back above $31.84, the peak in 2/b.

 

GDX: Miners Outperforming Metals

gold prices 15 january 2025

VanEck Gold Miners

The miners have performed much better than both metals over the past three weeks, but the count still points lower, and an established trend of lower highs and lower lows is in place.

 

Positioning: Bank Strategies Indicate a Bearish Outlook

gold prices 15 january 2025

 

The banks used just a 1% appreciation in Gold to add another 5% increase in their net short position. They obviously believe Gold is going lower. And when the Banks start covering their shorts again, the price will fall, as is typically the case.

gold prices 15 january 2025

Same story, different metal. Banks added a “19%” increase in their net short position on a rally of 4% in Silver. This is bearish.

 

Conclusion: Bearish Momentum Persists

Micro bounces aside, the picture remains bearish.


Buy gold and buy silver today to secure your financial future.


 

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About the Author

David Brady has worked for major banks and corporate multinationals in Europe and the U.S. He has close to thirty years of experience managing multi-billion dollar portfolios including foreign currency, cash, bonds, equities, and commodities. David is also a CFA charter holder since 2004.

Using his extensive experience, he developed his own process utilizing multiple tools such as fundamental analysis, inter-market analysis, positioning, Elliott Wave Theory, sentiment, classical technical analysis, and trends. This approach has improved his forecasting capability, especially when they all point in the same direction.

 

His track record in forecasting Gold and Silver prices since has made him one of the top analysts in the precious metals sector, widely followed on Twitter and a regular contributor to the Sprott Money Blog.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.