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Gold printed a failed, 42 day daily cycle low early December. Gold rallied out of that daily cycle low, peaking on day 1 and then drifting lower through Thursday, day 10.

3 gold (10 Per Page) Members Stock Charts com

The bearish break out of the flag formation last Thursday saw gold close below the lower daily cycle band, indicating a conintuation of the intermediate decline. It appeared as if gold would extend its intermediate cycle decline. But Monday’s close above the declining trend line negated that. Since it is not uncommon to get a shortened cycle following an extended cycle (42 days) I think that it is possible that gold has printed an early daily cycle low.

And it looks as if the dollar is cooperating …

$$$

The dollar’s daily cycle peaked last Thursday, day 6 and then formed a swing high on Monday. The buck closed lower once again on Tuesday, but found some support at the 50 day MA. Notice how the previous daily cycle decline was halted by the 50 day MA. If the dollar loses the 50 day MA, that would pretty much ensures the continuation of its intermediate cycle decline.

Which should help to propel gold higher …

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