Gold and GDX Daily Update – Road Map
If you caught our October 4 early alert, you’re probably smiling right now—gold just dumped over 6% in a single session. Missed it? This is your catch-up moment. In today’s gold analysis, we break down whether XAUUSD and gold futures are launching a new bear market or offering a buyable dip, using multi-timeframe technicals—candlesticks, trend structure, and momentum—to map the next high-probability move.
CANDLES
GLD
No new universe here. GLD just needed one more day to give up. Be prepared. If the weekly closes with this Bearish Engulfing, I would look for all gaps in this sequence to close, which would equal a loss of about a quarter of its value. This is a pessimistic view, but there are quite a few prior examples of similar behavior after this pattern.
Gold
Gold has fallen. A bearish engulfing on the daily and 2D frames, along with a break below the 8-EMA support on the daily, ended the longest-ever overbought streak (34 trading days). Let’s see how this domino falls and flips the larger frames.
Elliott Wave: Gold and GDX
I separated the micro charts for XAUUSD and GDX. GDX likely formed a downward impulse, so a corrective bounce would be the normal next step.
XAUUSD also formed a very impressive 8.5% impulse off the top and is likely working on a sharp upward zigzag. The chart below outlines a preliminary path for the correction, which is likely to be quite significant.
Summary:
Gold, silver, and GDX flipped strongly bearish in the short term. If the momentum doesn’t change, we could see real damage to the mid- and potentially long-term frames by week’s end.
Happy Trading!
