Gold About To Trend, But Which Way? Moment Of Truth At Hand
Taki Tsaklanos | May 23, 2017 12:08AM ET
Things are getting very exciting in the gold market. After a false breakout in April, followed by a false breakdown in May, gold will be forced to choose a new trend by no later than in June of 2017.
Our research team believes so because of the chart pattern of the gold price. Gold has created a huge triangle pattern since last year, with higher lows in 2017 and lower highs since last year. The annotated pattern on the chart (below) says it all. The pattern is now very close to ‘resolve itself’. It is a matter of 2 or 3 weeks.
So in June of 2017, we will see the next trend in the gold market, and it will determine the direction of the price of gold for the remainder of 2017.
We wrote last week whether The Price Of Gold Would Benefit From The Dollar Breakdown. As the U.S. dollar breaks through support, gold is getting a bid. The question is: how strong is this trend? In other words, if the fall of the dollar will be moderate, then it will not necessarily drive the price of gold much higher. However, if the dollar breaks down big time, it could definitely boost the price of gold, leading to a breakout in gold’s chart pattern.
Our best guess is that the dollar will decline until the 92 to 94 area. That is some 3 to 4 percent below today’s level. That is why we don’t believe the price of gold will get a huge boost because of the dollar’s breakdown. Time will tell, and we are near a resolution and a new trend in the gold market.
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