The U.S. Dollar’s New Bull Market Is Very Bearish For Gold

Technical analyst Jack Chan charts the latest moves in the gold and silver markets, noting a bull market has emerged for the U.S. dollar.

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Our proprietary cycle indicator is down again, confirming the recent bearish price action.

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The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.

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The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.

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Speculation has now dropped below the level of the previous bottom.

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The trend for gold miners (GDX) remains down.

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The U.S. dollar (USD) is in a bull market since our major buy signal in 2011. A strong dollar is not friendly to the precious metals.

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Silver is on a long-term buy signal.

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The silver ETF (SLV) is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders.

Summary
The gold sector is on a major long-term buy signal. The cycle is down, and the trend is down, however, so short term, gold looks dangerous. The correction continues, and caution is advised.

The SPDR Gold Trust ETF (NYSE:GLD) rose $0.34 (+0.31%) to $108.39 per share in Monday afternoon trading. Year-to-date, the largest ETF tied to gold prices has gained 6.31%.

This article is brought to you courtesy of The Gold Report.

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