Gold is expected to maintain its recent volatility pattern in the coming months, as signs can be found in both the 154-day and 310-day cycles. For the 154-day cycle, prices may have bottomed out in November as the moving average began to turn upward, while the 310-day moving average is still in a downward rhythm and looks set to continue until April. The comparison between the two can be seen as follows:
As we have said before, the bottom of the 310-day cycle may occur in April, but there may also be a slight advance or lag because of the larger level of the cycle itself. The 154-day cycle rebounded to February and the 310-day decline continued into April, in which case sawing and concussion back and forth are inevitable.
Only when the bottom of the 310-day cycle is clear will the market enter a new upward pattern and maintain a strong upward momentum for several months. The ultimate goal of this cycle is still directed to the region 2212-2340.
