Dollar, Gold and Silverby Sol Palha, Tactical Investor | April...

Dollar, Gold and Silver
by Sol Palha, Tactical Investor | April 20, 2010

http://www.financialsense.com/fsu/editorials/ti/2010/0420.html

Under normal circumstances Gold would have mounted a stunning correction given that the dollar has mounted a very strong rally over the past few months. This is not the case this time around and Gold has only mounted a mediocre correction and now appears to be putting higher lows instead of lower lows in the face of a strong dollar. A weekly close above $1175 will most likely result in a test of the old highs. A test of the old highs if not confirmed by our technical indicators could then result in a rapid move down to the 990-1040 ranges.

Gold is still expected to consolidate for a few more months. If the consolidation remains in a tight range (1000-1200), then expect Gold to explode upwards once a new weekly buy is generated.