Gold finally broke through the down trend today. It also appears the recent gold trading cycle bottomed on June 16th.
After the massive run we saw last year into Mar. this has been a very mild correction. That alone speaks for golds strength or should I say Bernankes penchant to print dollars. The A wave should now be starting. Remember A waves rarely make new highs so don't get discouraged if gold doesn't shoot straight up like it did last fall. As I said in today's update I expect the Fed to continue cutting as the market weakens. They just need to bring down the energy markets first. Perhaps this will happen naturally as the parabolic price structure finally collapses. If not then I expect we will see intervention in the oil markets. One way or another in an election year the powers that be are going to bring down oil prices. Of course this will just make the problem that much worse in the end but hey what's more important doing the right thing or getting re-elected?