Gold: Box Breakout or Breakdown?

Gold: Box Breakout or Breakdown?

GOLD / U.S. DOLLAR FX_IDC:XAUUSD


This is the daily of Gold             .

Whatever market we’re looking at, it’s all about the US Dollar             – and will continue to be for some time. The DXY             has broken above major support. That being the case, I find it inconceivable that Gold             should rally… yet, I cannot ignore the bull div             forming in Gold             .

We may be looking at a pause, in which case a breakout of last week’s box formation could materialize. Though I suspect any rally would be contained to the 1250 level, which would offer a new short opportunity.

The Dollar may consolidate for next week, allowing Gold             a reprieve.

Also, the speculative positioning is similar to the bottom of the 2015 rally.

If however gold             breaks below and closes below 1205, expect 1150.