Gold Prices: Short-Term Correction Should Finish This Week

Wednesday, July 20, 2016

gold prices

Last week it looked like gold and silver were dropping into a quick half-cycle low before turning immediately higher. However, this correction is lasting too long for a simple half-cycle depression. Therefore, we are more likely to be forming the second common of the current 6-month cycle.

I don't think prices will drop too much further before completing low #2. I will be watching for a confirmed price swing to mark the bottom and will, certainly, provide an update the moment I see evidence of a reversal. If you haven’t had the chance to read my article explaining the various gold cycles, click here.

Gold Prices

I thought we were getting just a half-cycle low, but I'm pretty sure we are dropping into the 2nd common cycle trough of the larger 6-month cycle. Gold prices should bottom between the 20-day and 50-day moving averages - and then start a new cycle higher.

Silver Prices

Prices are dropping into the second common cycle low of the current 6-month cycle. I will be watching for a price swing to mark the bottom. Silver still looks stronger than gold going forward.


Miners are consolidating and will turn higher with gold and silver. In the worst case scenario, I see miners dropping to the lower trend channel to make common low #2.

I expect the short-term correction in gold, silver, and miners to end this week. Consequently, it should begin a new cycle to the upside.


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AG Thornson

AG is an accredited CMT through the MTA and the editor of His members receive daily updates and regularly scheduled reports 3-days a week. He prides himself on making his analysis easy to understand through the use of adaptive and creative charting methods. You can reach AG at