In December’s update [Update on Gold: Dec 14, 2015] we discussed the importance of the dollar on gold’s future price moves.
…the weakness in DX since Dec 3 suggests there’s a decent chance of the Fed punting. If DX plunges further, GC’s 4th bounce could be a doozy: 1150-1180 for starters, and 1286 after that.
The Fed didn’t punt. They increased rates by 0.25% as expected, and DX rallied for a whole five days. After peaking on Dec 21, DX has sold off in fits and starts [see: Update on DX Feb 9, 2016.] GC spiked, reaching 1150 on Feb 4 and 1180 four days later.Today, it backtested the TL at 1180 and is threatening to break higher. Does it still have legs?
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