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When Gold was trading at $1,600 per ounce, the Power of the Pattern suggested Gold should trade up to $1,900 and then run into SERIOUS RESISTANCE! (See post here) The advice at that time…”We are long Gold at this time and we will Look to harvest long Gold positions when it hits resistance.”Another reason I suggested that Gold be harvested was….Gold was becoming a crowded trade, with GLD becoming the largest ETF on the planet!!! (See post here)Now a year and a half later, Gold finds itself $300 lower in price. What has the U.S. Dollar done over the past 18 months? The US$ has gained 13% while Gold has declined 15%. Is the Dollar the reason that Gold is declining in price?The Dollar of late is doing something it hasn’t done in 10-years, its breaking above a falling channel that has contained it for 10 years. The breakout becomes very important for Gold, because as the US$ is breaking resistance, Gold is on a 10-year steep rising support line at (2) in the chart below....MORE
