The Dollar 15-Year Cycle Decline Should Favor Gold [SPDR Gold Trust (ETF), iShares Gold Trust(ETF), ETFS Gold Trust]

gold AAATrader MC: The Dollar is following an accurate 15-Year Cycle which is made of five 3-Year Cycles. On the following chart you can see that we are currently in the 15-Year Cycle that began in 2008. The current 3-Year Cycle that began in 2011 did not make new highs above the previous 3-Year Cycle that began in 2008 which puts the 15-Year Cycle in decline. As a result the current 15-Year Cycle has probably already topped and the following 3-Year Cycles should make lower highs and lower lows. The Dollar Index should therefore decline during the next ten years until the next 15-Year Cycle Low due in 2023.

The current 15-Year Cycle topped in 2010, only two years after it began in 2008.  It is the first time that the primary 15-year Cycle topped so early as the primary 15-Year Cycle from 1978 topped seven years later in 1995 and the 15-Year Cycle from 1992 topped eight years later in 2001. This shows that the debasement of the Dollar is strongly accelerating with the Fed quantitative easing policy and the massive debt accumulation. The 15-Year Declining Cycle means that a sharp drop in the value of the Dollar will continue in the coming years and the U.S. government debt needs to be monetized as no one will buy it except the Fed.

Dollar 15 Year Cycles Chart

A closer view shows that the Dollar is currently in the second 3-Year Cycle which failed to print a higher high. We can also see that the Dollar is probably making a Complex Head and Shoulders pattern with dual heads. I expect the Dollar to break below the neckline of the Head and Shoulders pattern as it is time for the Dollar to print a 3-Year Cycle Low.

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