Gold Is On The Verge Of Greatness
Jesse Felder | Apr 13, 2017 11:46AM ET
When Donald Trump bemoaned the USD's strength Wednesday night, the price of gold jumped. The last time that gold tested this key resistance line, I was less optimistic about its ability to overcome it. However, as technicians like to say, the more resistance is tested, the weaker it becomes.
And as my friends at Nautilus recently pointed out, the dollar is possibly following a pattern very similar to its 2002 peak. If President Trump gets his way and the dollar peaks and reverses here, gold will almost certainly break out, officially ending its 6-year bear market.
Finally, from a fundamental standpoint, gold has perhaps never been cheaper relative to financial assets than it is today. In other words, once it does break out, there will be plenty of potential on the upside.
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