Gold Market Update

The big news last week for the Precious Metals sector was that the dollar broke out of its Head-and-Shoulders bottom to start its “Swansong Rally”, a development predicted in the last update, and for weeks before that. This caused PM sector stocks to break sharply lower, and brought gold to the point of breakdown from its Head-and-Shoulders top, as we can see on its latest 6-month chart shown below. It hasn’t quite broken down yet, but is expected to follow stocks’ lead and break down soon and head lower. Target is support in the $1200 – $1215 zone which is expected to be reached as the dollar index arrives at its upside target in the 97 area.

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