Tough market, but still bullish on gold

There is much to talk about, but I'm strapped for time so I'll keep things short. First, the dollar index broke above its recent downtrend line today, but I think it's a bull trap. Second, crude sold off by almost $8 to $135 today ($135 seems like a pretty good buy to me), yet euro and gold held up pretty well. Indeed, crude has been outperforming euro and gold by a big margin this year (mainly due to increased supply/demand premium and Middle East premium), so it is not surprising to see euro and gold turn a blind eye to crude's puke action today.

I think a lot of traders/trading programs were trying to assault gold today based on the massive crude sell off, but it must have been a frustrating attempt because gold refused to break below key support (910-915). I can't wait to see all the gold shorts that piled in today get squeezed eventually. I have been anticipating an imminent break above 950, but I will be more patient about it. But assuming we are at the cusp of the next bull run in gold, there is one thing that I am almost certain about: gold is not going below 910. If gold does break below 910, I am going to short the hell out of it.

Gold: 1-month (potential falling wedge)


Gold: 6-month (retest of breakout complete?)