With gold in the throes of a major correction, we took a long, hard look not only at the Comex futures contract, but at the Dollar Index, where a short squeeze about to enter its second month has progressed, much to the detriment of bullion. Still-lower prices for gold seem likely, as do higher prices for the dollar. What would change this scenario? A good, strong impulse leg on the hourly chart. Until it happens, however, we should infer that the downtrend is likely to continue. This same idea was relevant in our analysis of T-Bond futures, which are in a protracted decline.
