Borsa MAX Borsa

Gold: If the dollar is starting a protracted decline that is going to last for another 3-4 months I don’t see how gold can continue to ignore it. Many people right now are assuming that since gold hasn’t responded to the weak dollar that means it’s never going to respond. But we know from experience this is not how markets work. The vast majority of people all go to the same side of the boat late in trending moves. That’s why being a contrarian works. We try to be ahead of the crowd and anticipate turns rather than get caught by them. So while most analysts continue to predict disappointment from metals based on their expectation for the current trend to remain in place indefinitely we on the other hand expect trends to end and reverse when the time comes. Gold is late in it’s intermediate cycle, it’s forming a bull flag continuation pattern and has been frustrating gold bugs for 8 weeks now as it just churns sideways. I would like to see just a little more frustration but I think we’re getting close to the point at which the market recognizes the dollar is beyond the point of no return. Once that recognition arrives I think we’ll see a violent move higher in gold and metals. It’s going to catch a lot of traders by surprise and many are going to be forced to chase. My advice is don’t be afraid to chase immediately once the recognition days arrives.