Everyone seems to be worried that continued strength in the dollar is going to take down gold. We've already seen the stock market and oil defy the dollar. Why should gold be any different?
Remember gold is in a secular bull market. That is a force that is not going to be halted by anything the dollar does, especially not a technical bounce in a long term bear market.
Gold is also entering the final phase of this C-wave. The upward pressure during the blowoff top in a C-wave advance is going to overpower anything the dollar does.
I suggest investors quit worrying about the dollar and start paying attention to what's happening in gold. The explosve rally this week is just about what we would expect as gold emerges from an intermediate cycle low.
Posts
