USDX: Gold Can’t Wait To Fall - Even Without USDX's Help

The above combination tells me that we are very well positioned in case of our short position in the GDXJ.

Besides, as an analytical cherry on the bearish GDXJ cake, please note that we just saw a sell signal from the MACD indicator (lower part of the chart) while it was visibly above 0, and after a relatively big short-term rally. We saw this kind of performance only several times in the previous year, and it meant declines in almost all cases. We saw it only once before this year – in early January, and a sizable decline followed.

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Jared Green 1 month ago Member's comment

Inflation and dollar weakness should push gold prices up but I was shown a gold price forecast of 1400.

Przemyslaw Radomski, CFA 1 month ago Author's comment

Thanks for the comment. Inflation is one thing, bond yields is another. Thus, dollar doesn't have to decline now. In fact, the opposite seems more likely to me. I think that gold will move well beyond its 2020 highs, but not before declining (likely in the following few months).

Almoni33 1 month ago Member's comment

I am not sure you are right and gold will fall below the price of 1600 - nevertheless I will buy there with great joy

Almoni33 1 month ago Member's comment

Thank you for your article

Przemyslaw Radomski, CFA 1 month ago Author's comment

Thank you, I'm happy that you enjoyed reading it.

Almoni33 1 month ago Member's comment

Unlike dozens of authors on and others, you have shown not only charts but also target levels, which is especially significant. Yes I think you were wrong and we will not see gold at 1400 $ but more importantly you were not afraid to show your trade view

Przemyslaw Radomski, CFA 1 month ago Author's comment

I'm just not that good at "being afraid" :) Thank you. The next several months might be very interesting in the PMs, that's for sure. The long-term fundamentals are ridiculously bullish, and yet, it seems to me that the gold's going to initially (!) react to strength in the USDX and (eventually) declining stock market by declining significantly. We'll see. Have a great weekend!