What really matters is collapsing dollar. It's collapsing with similar pace as it was rising. Market reflects the fact that the era of USD as world reserve currency is coming to an end. Dropping almost half of USD speculative positions a couple of months ago marked the collapse. It is marching south to 80 area on USD index with possible short pause at 84-85.
If the current lows survive somehow, reaction to 91-92, maybe 93 is possible, but I don't see strong factors supporting dollar, the FED would have to aggressively start rising rates, which they can't afford due to humongous debt.
Gold is benefiting from many factors:
- collapsing dollar
- overbought stock market showing signs of exhaustion and bubble
- falling bitcoin
- rising inflation supported by all governments around the world to pay their depts
- enormous world debt
- rising yields will not stop gold's advance till real interest rates are negative, so dropping bonds might look as negative influence on gold at first but it will be overcome by this sector
- gold created V shape on monthly chart and is heading for new tops
- USD index monthly candle closed below crucial 89.2 level which is very bearish for USD
- silver closed for the first time above 17.2 on monthly chart, very bullish
- gold was very near to close above 1353 a crucial level
- all monthly candles close above 1265 recently, bullish
- the rally from recent bottom was strong, despite falling bonds, gold broke with its strong correlation with bonds for good; this correlation is still holding some investors away from gold, but when they see gold's progress they will join the trend
- gold and especially silver are masking their strength with slow but persistent advance and defence of crucial levels
- and finally gold broke through all obstacles and resistance Sive was pointing out since 1282, so if you only accumulated positions at these resistance levels you would benefit and lose not.
- need to add that world economy is slowing down and one of the factors is addiction to oil, and world is running out of oil, price will gradually go up, because this is fundamental.
