The dollar has reversed and is now testing the lows.
Conversely, when we look at the price action of gold (GLD) its collapse exactly mimics the dollar’s reversal.
Taking into account the futures market activity in gold, it made new daily highs last week during the overnight session, Sunday-to-Monday.
Using that knowledge on GLD, (adding it to price action) it retraced to 38%, of the recent down move this past Friday.
If we’re in a real bona fide reversal of the dollar and gold (posting more confirmation on gold tomorrow), then expectations are for continued gold downside during the coming week.
The dollar, bonds and gold, at this juncture are moving in tandem: Dollar and bonds up, gold (and silver) down.
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