Gold and the U.S. Dollar
I am not calling for a top in Gold, but I want you to be aware of what is also going on in the US Dollar that can cause at a minimum a very good setback. Gold and the Dollar have been mirroring each other in opposite directions since March 23. The Gold is into new all-time high territory and all we have above are major Gann squares to look for resistance. Gann squares are of major importance, but I usually like to back it up another way. The way I see to do this is looking at what the Dollar has as major support using the Fibs. Using the 3/23/20 high to retrace back to the 2008 low, 38.2% is 91.35. With the 38.2% rule, we know that a rally has the potential to go all the way back to new highs, so this is the area to watch for a good move up and a turn lower in gold. Even a 38.2% bounce from this level would be $5.00. I would like to see Gold at a major Gann square when and if this happens. Above look for 2021.00, 2105.00 and 2191.00. Failing to hold 91.35 will lead to much lower levels.