Gold broke through resistance today demonstrating leadership amongst the precious metals.
While precious metals all posted gains, gold solidly broke above resistance.
The breakout by gold today confirms day 20 (February 28) as a 20 day right translated daily cycle low. That makes Wednesday day 8. One of the things we discussed was that gold was waiting on the dollar to break lower. As we will see, the dollar did break lower today. Gold should continue to rally as the dollar seeks out its daily cycle low.
Tuesday saw the dollar test and be rejected by the declining cycle trend line. Wednesday saw the dollar break lower out of its mini bear flag. At day 15, the dollar still has 3 more days before entering it timing band for its daily cycle low that can see it extend out to day 28. Therefore we could potentially see the daily dollar cycle continue lower for another 3 to 13 days.
The previous daily cycle for bonds peaked on day 12 and declined until day 16, where bonds found support at the rising 50 moving average. Bonds formed a swing low on Tuesday confirmed a new daily cycle today.