Market Update: Gold Analysis

When analyzing gold’s current market structure, it’s important to look at the termination of the uptrend back in 2011. That period showed a pretty aggressive move down following the peak.

Now, looking at the current cycle, we need to examine the stopping action that occurred in 2020. This stopping action led to a multi-year trading range and a much larger change of behavior compared to previous cycles. This type of extended change of behavior is what would be expected now, but not to the same degree of complexity as what we saw after 2011.

At this point, we are most definitely in a change of behavior. We just had the climactic action that has been anticipated and discussed in previous analysis. This type of event was already being expected in this area, particularly with the type of volume signature that is high – something similar to what we’ve had in comparable areas from previous cycles.

Going forward, we’re going to have some supply as an opposing force coming in. The sequence that has been provided can be used for analysis as the market develops.

An important consideration is that the attention will probably go somewhere else now. This is similar to what happened at previous peaks – everybody was in gold or silver at that point, but when the move down happened, that’s when a lot of market participants decided to leave these positions and not trade it because it just became somewhat dull. This shift in market attention is a natural part of these longer-term cycles.

The key now is to watch how this change of behavior unfolds and whether the market follows a similar pattern to historical precedents, while recognizing that each cycle has its own unique characteristics.

This analysis was taken from our Wyckoff Trading Course Part 1 class on Monday, February 2nd, 2026.

Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.