Greetings Jim,

We now have a slight positive divergence developing between the Gold Currency Index and gold in US dollar terms. The GCI is already testing congestion resistance near 28, while gold remains well below its equivalent resistance level in the $1,152 area. Further, GCI momentum and oscillators have both moved up to recent highs in positive territory, while their gold counterparts are well below their respective highs, with momentum still in negative territory. This positive divergence suggests it has become more likely that gold is preparing to return to the recent all-time high. A break well above that congestion resistance at current levels would be another bullish signal.

Best,

CIGA Erik
Prometheus Market Insight