Below is an interesting post from the ChartFreak.com website focusing on gold and the USD back to 2000. We have been talking a lot about the moves in the USD and how gold will be impacted but today is a great example of the USD stabilizing close to 100 points on the dollar index (currently trading at 98.80) and gold moving up. I would note chart 3 and 4 for a potentially bullish set for gold.

I completely agree with the author that we are in a bull market and what he says in the conclusion is spot on. We will not head straight up and “there will be pullbacks along the way”. This market will take time (which is very healthy for a sustained run up) but let’s all understand that we are up over $200 just this year and that is after a health $100 pull back. Buying on dips and selecting the best companies will prove to be a very valuable strategy.

I am now safe and sound in New Orleans and very excited about Brien’s show which starts tomorrow. If anyone is in town please drop me a line. Otherwise if you could not make it down here feel free to email me with any companies you would like me to chat with – Fleck[at]kereport.com.

Click here to visit the original posting page over at ChartFreak.com.

CAN GOLD CONTINUE TO RISE, SINCE THE USD IS MOVING HIGHER TOO?

That question and other ones similar to it keep coming up lately and understandably so.  Gold usually drops when the USD rises, but lately we do see both rising at the same time. I called a low in Gold recently and have been trading in the Precious Metals sector, but some are having a hard time believing it when they see the USD rising too.  Allow me to share my thoughts on this. The following 4 charts are from the weekend report, where I tried to help my readers see the answer that question.

GOLD AND THE USD

CHART #1 -The USD has slowly been approaching the Highs of 2015. The chart does look quite bullish, but it does also show prior lows being taken out and lower highs so far.

CHART #2 – Please notice the triple top in the USD that formed back in the 2000 – 2002. This is when Gold was bottoming and began moving higher. Do we see that now?

CHART #3 – Lets Zoom in on the USD  so we can see the triple top forming in 2000 – 2002.  It looks somewhat  similar to what we see the USD doing now, I see divergence.  I want to zoom in closer to show you 1 more important fact.

CHART #4 –  Zooming in on the USD WKLY chart of 2001 & 2002 overlayed with Gold.  During that 2001-2002 $USD triple top you will see that at that time Gold ignored the Dollars rise and they actually both ran higher together.  See the Orange Box .

That was on the 3rd top.  Might we be forming a 3rd top now?

So what does history show us here? ” Can the USD and GOLD really move higher together?”

Yes, they can, and we see that it actually has happened back in 2001-2002″.

Conclusion: I had to answer this question, because I called a bottom in Gold recently and have been posting charts of bullish looking Miners and opportunities to make some gains in this sector.  There will be pullbacks along the way, so you do want to be able to get in while price is closer to the lows. With the $USD rising, some are hesitating.  They do not believe that Gold can move higher along with the USD, so that question came up often.  I hope this research helps you to gain a little more confidence in your Precious Metals trading.  Things will need to be monitored going forward obviously, but for now I am Bullish on the precious metals sector and called a low using Cycles, Sentiment, and technical analyses.  If you think that a little extra research can help you in your trading, why not sign up for a month or a quarterly membership and add my findings to your trading style?