The US dollar, despite its horrible appearing fundamentals, is staging a solid rally and just may be setting the stage for a significant rally. Is it just possible that the US dollar could retrace 33%, 50% or 60% of its bear market losses?
If so gold bulls had better run for cover. Gold would then be slaughtered. Say a 50% retracement of gold's rise from around US$250 to US$450. That would take it to US$350.
I'm not saying this will happen. But one should never stubbornly accept a position and refuse to look at what just might happen. I remain massively bullish on gold over the medium and long term. But right now I need to see how this US dollar rally develops.
Never forget, a bet on gold is usually a bet against the US dollar.
