I don’t think this can be underestimated. I know I’ve probably bored you all to tears with chart after chart depicting the ‘golden bowl’ arc basing formation. Every time I’ve drawn it, I’ve used the arc tool provided in the charting software. It draws it geometrically perfectly, with the lowest point of the arc at the exact mid-point. When price touches a valid arc it reacts and backs away. It’s not easy to know in the early stages, a) whether we’re going to see a ‘V’ shaped bottom or an ‘arc’ or b) if it is an arc, just how far in time it will need to be ‘stretched’.

Once we pass the cyclical low, we start to get higher highs, and it’s at that point we can start to be more confident about how to place the right hemisphere. The US Dollar is the first time I’ve attempted to invert the arc and watch how it plays out at a cyclical top. I’d never seen it done before (but I’m sure someone, somewhere has). I just spotted that the previous cyclical Dollar top in the early 2000’s fitted this pattern. Time will tell, whether I’m barking up the wrong tree with this one – I can see some strong arguments for the Dollar to rally way past 100 and bust out of the dome. Yet, I can’t deny it’s there, and that (in theory), we’re fast heading towards a major Dollar cycle low.

Anyway, that’s all theory for now, but in the case of gold, the theory proved correct, and the arc contained price all the way up to THE breakout. For some, THE breakout will be the move to new all-time highs. For me though, THE breakout was the move above the final, long term, declining resistance line, with a weekly and monthly close above that line.

Gold investors right across the planet MUST be seeing what we’re seeing. Many of us have positioned into the miners which give much larger, leveraged gains during a gold bull market. The miners (and silver) have disappointed many by their slow rise (even though GDX/GDXJ/HUI are all up over 100% from their major cycle lows around 4 years ago). If I’m right, that’s about to change.

For me, this chart is the culmination of years of discussion, consideration and anticipation

Will there be an attempt to push gold down ? Can that be achieved, or will Gold priced in US Dollars follow the lead of all the other currencies which I’ve posted many times ? Strap yourself in to find out.

Edit: I made an error with the support line (must’ve knocked my mouse and not noticed) – I’ve added a ‘cleaner’ version.

Edit 2: This is a PM orientated site, so I don’t want to keep putting crypto posts on here. It’s bound to upset someone. If you’re interested at this important point, check out my Twitter feed.