GOLD & THE DOLLAR
While I’m expecting some kind of pullback at the $1390-$1400 level, I don’t think gold’s intermediate cycle will top until at least retracing the 50% Fibonacci level and probably back to $1550 by September. This will almost certainly be driven by an aggressive moved down in the US Dollar as it really starts to accelerate into the next 3 year cycle low due sometime net summer or fall.
The dollar couldn’t even close above the 200 DMA on the monster jobs report. Notice the 200 DMA is rolling over.
The net intermediate cycle low will be due in September or early October. I don’t think a test of the 85 zone is an unreasonable target.
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