I drew these support lines VERY carefully, by zooming in and making sure they were in exactly the right place. The most important one, on this log chart, goes all the way back to 2001. The implications of moving below it would be dire. The dollar is refusing to roll over at the moment, and has now broken above the right shoulder in a move that spells possible trouble for gold. If the dollar powers higher from here, gold could break into clear air and freefall. I don’t believe this will happen, for all the reasons I’ve posted in recent days. All indicators, sentiment readings and cycle positions are pointing to this being a major low for gold. It has to prove itself – not in the next few months, or the next few weeks, but days.


Truly nail biting stuff if you’re positioned in the PMs.