The USD is in a strong down channel as shown on the chart above. Although the overall trend for the greenback is still firmly bearish, there are opportunities for the greenback to rally within this channel, and that is when buying/trading opportunities will appear in gold.
For instance, at present the US Dollar has been falling over recent weeks, and we have seen gold burst up to make new all time highs. However the greenback is now at the bottom of its down channel, so it is getting some technical support from the lower bound of this trading range. It is likely that the US dollar could rally to near 77, to the top of its down channel, before retracing its steps to fall yet further and make another lower low close to 75.
It would be with this US dollar rally, and the subsequent drop in gold that would accompany it, that those who aren't yet long the yellow metal to get long at a slight discount. Or those who are already long, this could be a time to add to your positions and increase your exposure.
With gold breaking up through $1033, we are confident that we are in the midst of a tremendous rally in gold prices, which will drag up gold stocks such as those detailed in our portfolio.
$1200 gold will be here sooner than you think, so get long and hold on!
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