It looks like it took till Thursday for the dollar to make up its mind. In my last post I was expecting a decisive move by Monday or Tuesday.
After two weeks of frustrating
back-and-forth action it looks like the bear flag in the dollar is
finally ready to break to the downside. This should deliver one more leg
down to possibly test or marginally break below the February low before
forming an intermediate bottom.
The next 2-3 weeks should be the best opportunity for gold to test $1900
Again I don't expect a breakout to new
highs this year and once the test occurs it should fail and be followed
by another intermediate degree decline as the dollar rallies out of its
intermediate cycle bottom. The breakout to new highs should occur
during the next intermediate cycle sometime in the spring.