Gold Weekly Chart; Setting-Up with Negative Divergence that Will Begin Multi-Week Pullback

All that glitters is not gold. In a couple weeks, or couple days, the fantastic gold orgy will devolve into a pyrite pity party. The gold daily chart continues to show buoyancy higher on the daily basis. The weekly chart above shows the gold orgy in all its glory. Buying 10 grand in gold in 2016 gets you over 40K in gold now. Congratulations to the gold bugs.

All good things must end, but not quite yet. This is a weekly chart so it will have a new candlestick in progress for the new week at 9:30 AM EST tomorrow morning. If you made a boatload of dough on the gold run, consider exiting stage right.

The red lines show all the chart indicators sloping down, negatively, but price is not at a matching or higher high as compared to the prices at the Tweezer Top (blue circle). By definition, negative divergence occurs when price makes the matching or higher high and the chart indicators are all sloping down showing that they are out of gas and do not have any more strength to take price higher. Gold is almost there but not yet. Gold price needs to move higher a bit more before the neggie d would be locked-in on the weekly basis.

Thus, if you want to time the top to go short, or think about how to scale-out over the next couple weeks, simply watch for the price to move a bit higher, to that thin red line, and then check the indicators to see if they all remain neggie d. If so, you can call the top in gold and predict a multi-week pullback ahead.

In the morning, when the new candlestick begins printing, check the MACD line. It is always a sneaky bugger and if the upside is extended a wee bit longer, it will be due to the MACD line making a higher high. Watch it closely this week. If the MACD is long and strong, that likely says a jog move is needed, down for the week ahead, and the price will come right back up the week after and that is when the MACD will go neggie d again, and if the other indicators are neggie d, that will be the top. You get the idea.

Gold is set up on the weekly basis to top out anytime over the next couple weeks. The chart will tell you when, then hone in on the daily and 2-hour charts for more specific timing of the top.

The purple arrows show the tight standard deviation band squeezes. The tight bands, that are different than the tight bands such as the Counting Crows, predict a big move in price to occur but they do not predict direction. All 4 of the gold tight bands over the last couple years resolved to the upside. Gold bears never had a chance.

Of course, gold is going to be impacted, because the dollar and rates will be impacted, on Fed decision day 12/10/25, next Wednesday, so that will need factored into the mix. Market makers may try to keep all markets stable and sideways into the Fed decision in 8 trading days.

Simply watch the price and once it is matching the early October closing highs, and the neggie d on the indicators remains in place, gold is cooked on the weekly basis and will begin a multi-week descent. Keystone is not playing gold now long or short. The GLD ETF chart is the same dealio and you can see that the MACD wants to sneak higher so keep an eye on it. The GLL ETF, that is the inverse gold ETF, that goes up if gold goes down, is down in the cellar, as would be expected with gold at record highs, and it is setting up with positive divergence, as would be expected. So a potential play as soon as the neggie d locks in for the top would be GLL long or shorting GLD. There are other ETF's to play. Do not play that 3x leveraged garbage. The 2x ETF's are leveraged enough if you seek risk.

Whoa. Check that out. The neggie d is in place for GDX, the gold miners. Ditto the juniors; GDXJ. Let the new candlestick start tomorrow morning and check the charts but both of these are likely topped-out and will begin a multi-week move lower. Keystone is not in the gold miners long or short but obviously, the play is short going forward.

NEM price is not at a matching high, yet, but it is almost neggie d. DUST (inverse gold miners) has finally been punished enough and its weekly chart is set up with possie d and ready to recover so check on this one and its new candlestick after the opening bell. The Solid Gold Dancers had legs that went on forever. Add in a top-shelf performer at the top of her game the perfect Irene Cara. You are born with that. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.