Little Reason To Think Gold Will Break To The Upside [SPDR Gold Trust (ETF), Market Vectors Junior Gold Miners ETF]

While Gold has held in very well with the rising US$, it failed to rally when the US$ corrected from 100 to 93. If the US$ had put in a major top then precious metals would have surged.

This chart argues that the US$ has another push to the upside before it makes a major peak.

May29.2015USDBulls

US$ Bull Analogs

We are still waiting for Gold to make its final break lower. In considering history, technicals and sentiment, we have little reason to think Gold will break to the upside. Mind you, we are huge gold bulls and expect a very sharp rebound from the $1000-$1050 area.

If and when Gold reaches that area it will do so in a very oversold state with very negative sentiment. The combination of those factors (very oversold, very negative sentiment) meeting with very strong support can produce big rebounds.

If metals are heading to new lows then it would likely create one last chance to buy quality junior miners at fire sale prices.

This article is brought to you courtesy of Jordan Roy-Byrne From The Daily Gold.

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