Gold Reconfirms Bullish Intermediate-term Translation
 |
The breakout predicts another 4 to 8 weeks of gains heading into the next Intermediate-Term Cycle High (ITCH). A strong monthly close in April would reconfirm the bullish translation of the annual cycle from January and forecast additional gains during the second half of 2011.
 |
The US dollar index will likely form an ITCL sometime during the next 3 weeks, and it will be important to monitor the gold market response to the forthcoming short-term rebound in the dollar. If gold is able to hold near recent all-time highs as the dollar reacts, that positive divergence would be a bullish sign supporting a continuation of the long-term uptrend.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.