June Gold has broken down once again with Friday’s breach of a hidden-pivot support at 417.70. Earlier in the week the futures took a weak bounce off that number that lasted for a few days, but now that it has been violated a test of round-number support at $400 seems likely. Bullion’s weakness was corroborated by corresponding strength in the Dollar Index, which punched through a hidden-pivot resistance at 86.33 that had contained the greenback for a few days.

The mini-euro, meanwhile, finally succumbed to gravity after holding for several days significantly above the 1.2462 downside target I’d projected a little more than a week ago. As gold and the dollar went their separate ways, the euro synchronized, giving up 0.84 points to end the day at 1.2564. Its weakness was attributed to the apparently growing likelihood that the French will reject the EU constitution when they vote at month’s end.

Whether the dollar, euro and gold will continue to move synchronously is anybody’s guess, but if they do, their respective trends should be expected to end at hidden pivots of comparable degree. This implies an impending swing-low in June gold at exactly 401.90 that occurs more or less simultaneous with one in the June mini-euro at 1.2462. I can discern no corresponding rally target for the dollar, but suffice it to say, the Dollar Index has broken out of the channel that was shown in the chart accompanying last Wednesday’s commentary, titled “The Dollar Doesn’t Know It Should Be Falling”.

As a final note, I’ll mention that we took a speculative position in the shares of Coeur d’Alene on Friday, notwithstanding my bearishness on the precious-metal complex over the near- to intermediate term. We’d been waiting for CDE to fall to a promising hidden-pivot support at 2.69, and on Friday it finally did. We acquired stock using a 2.70 bid, stop 2.59, and although the stop was a bit wider than usual it proved unnecessary, since the stock never fell below 2.70. CDE ended the day at 2.75, but because of the parlous look of the mining stocks, we need to be ready to take partial profits on our position if the opportunity should arise. If successful, that would cushion us to hold CDE shares comfortably if the stock declines to new lows, as it might.