3/22/17: The US Dollar finds daily support

In my last post, I argued that the US dollar is highly correlated to gold, although it is a negative correlation. Continuing the thought, if the US dollar rises, that would be bearish for gold. On a daily chart, support has come in the dollar (UUP). If it can bounce from these levels, gold may fall at least short term.

The weekly chart also looks more bullish than bearish, with UUP already having broken above previous resistance.

The monthly chart shows a different and more bearish story for the US dollar, which is why I am hesistant to say gold has that far to fall here. Resistance has formed on the US dollar.

My conclusion:

Gold is more bearishly aligned in the near term (coming months), but may be poised for a rally in the longer run (looking out 6 months to a year). I'll play this by ear, but first things first, the dollar needs to rally from here. Once that starts, gold may pull back.