As I stated in a previous update for gold, gold dropped back down to 1300. This was very expected to me and was almost common sense to revisit this price no matter what. Now the tricky part is now to figure out what is next. Gold is slightly below the 1300 level at the moment which is bad. The price could drop down to 1260ish level before heading back up to the 1300 range to continue its way up, or we could see a sharp turn back up to the 1320 level. I think the 1200 level is history for the time being. If we were to hit 1200 and drop below that, Id be very worried about the gold market. I strongly believe we hit 1400 and perhaps 1500 in 2018. The only thing that can stop this is deflationary forces .
The US dollar has not yet started to have a bounce. I expect a dead cat bounce here to start but it has been very weak. I think it will channel upwards soon and this will cause gold some pain while allowing the smart money to decrease their short positions which will allow the next upleg in the gold market.
