The Dollar and Gold remain near potential reversal levels. The daily RSI (14) in the Dollar dropped below 20 last week, supporting the potential for a near-term bottom.
Gold is above $2000, and we could see prices spike higher over the next 72-hours. Friday’s employment report could be the trigger event.
We are in unprecedented times, and this is an election year. If the Dollar collapses and stays below 92.00, gold could continue higher. Gold futures would have to close progressively above $2100 to promote a mini-bubble.
Any spike above $2000 that quickly reverses and drops back below $1900 would establish a correction in gold back towards $1660.
The Gold Cycle Indicator is at max cycle topping (450).
-GOLD- The next few trading days are critical. Progressive closes above $2100 in gold futures would promote a mini-bubble in gold, and metals could continue higher.
A spike that doesn’t exceed $2100 could trigger a multi-week correction back towards $1660. A daily finish below $1900 would confirm this scenario.
-SILVER- Silver prices are retesting the $26.00 level. We could see a spike higher with gold over the next 72-hours.
-PLATINUM- Platinum could also spike higher over the next few days. It would take a clear rally above $1050 to signal a potential bullish breakout. Failing to break above $1050 could signal the beginning of a multi-week correction.
-GDX- Miners finished 4.40% higher as gold lept to fresh highs. A gap higher tomorrow is becoming likely. Technically, we still have a bearish short-term sell signal from the close in GDX below last Monday’s gap. Prices need to close above $44.46 to erase the short bear signal.
-GDXJ- Juniors came close but failed to close above $63.31. Last week’s exhaustion gap sell signal remains active. Nevertheless, prices could spike higher over the next 72-hours.
-SPY- Stocks (SPY) closed above 330, filling the February panic gap. However, something seems off. The 10-year Treasury yield is falling as stocks rise (risk-off). This phenomenon also preceded the February peak. Stocks are overdue for a correction. We see a revisit of the 285 – 290 area once prices peak.
I’ll continue to post critical updates to Premium members throughout the week.
Have a great night.