The below chart is gold on a 4-hour timeframe:
And not coincidentally, here is the DXY as a mirror image along the same timeframe:
From a daily viewpoint, the DXY hit the overhead trendline this morning. Dollar bulls want momentum to stay overbought (example shown in chart) while price breaks above the line. In that scenario, a move to 105.5 becomes the probability.
The daily gold chart below: Gold might be in for a hard ride to $1850 with momentum flatlined on the way down. Bulls have failed to recapture the 200-DMA just this morning; prices are also failing to hold the June lows this week.
Of course, the first warning shot was the weekly close below $1935.
It now looks like stackers will have an opportunity to get in even cheaper in the days/weeks ahead while bullish sentiment is crushed. I do not think gold is never going up again, but a wash-out now seems even more likely before another move-up.
(Source: Kitco), all rights reserved by original source.