Although gold made a knee-jerk reaction rally to 1097, at the time of this writing it has fallen back to 1087. We elected one Weekly Bearish at 1084; from the last high, we generated a few more in the 1079 to 1071 area, followed by 1040 and 1026.
It is between 1026 and a small gap down to 983, followed by 934 and 885. The horizontal lines are the reversals – red for bearish and green for bullish. There are clusters forming above (resistance) and below (support).
Keep in mind that the goldbugs will jump up and down, declaring that war is great for gold, so you should buy gold again. First and foremost, capital flees from the battlefield. The dollar rallied sharply for World War I and World War II. Gold made its low in euros in January of this year, not in July, as was the case for dollars. Everyone trades based upon their currency. The rising dollar is where you will need to focus your attention.
TIME is still the most important factor, so look to the Benchmarks.
