For gold to drop into the next 6-month low, we need the dollar to stabilize and turn higher. After consolidating for 2-weeks, the dollar is once again slipping to new lows. The trend is incredibly oversold, and prices are down more than 10% since March…we are due for a bounce.
I see the potential for an undercut low in the coming days if prices find support and turn higher near 92.00. An undercut low reverses higher 2 to 4-days after breaking to new lows.
Note- If the dollar is unable to find a bottom and continues to crash, metals and miners could extend higher.
We should know which dollar scenario is playing out by Friday.