The US Dollar remains in a downtrend. The current rally has now run into resistance at the downsloaping trend line and the 78 - 78.50 resistance zone. Relative Strength (RSI) is at extreme highs indicating that rally is over extended. Since Gold Bullion is a currency and it moves in the opposite direction of the US Dollar, a topping out in the dollar will be bullish and would support a bottom in gold bullion.
Jim Sinclair's comments:
Black Boxes, in the final analysis, are momentum machines so we shall see. One thing you can take to the bank is that the dollar will trade at .72 , .62 and .52 USDX. Dollar fundamentals go from incredibly bad to incredibly worse,even just today. Although market quotes and value rarely meet, this dollar rally has a foundation in sand.
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