Loading ...Gold strength or dollar weakness
This is Gold in Euros. Trend lines drawn through weekly closes. Gold in most currencies made lower intermediate highs this year. This has meant reduced margins in miners operating outside the US and helps explain their lacklustre performance. Gold needs to hold above this trend line which means showing strength in the face of a likely recovering dollar. 1060 looks like the critical level. Close below this and the 700’s come into play
I’m not saying that the 700’s is impossible, but if it does happen, it’ll be the first time the gold cycle has failed since we came off the gold standard in the 1970’s.
Well, we have to break down first before this becomes an issue so the cycle interpretation could still be correct. However given the proximity to the breakdown point there is a sense of urgency.