One reason I think gold will soon come under renewed pressure is that the dollar appears to be consolidating for a nearly 2% rally to 85.16, a major Hidden Pivot resistance (see inset). Notice how the top of an earlier rally that culminated on July 12 stalled precisely at ‘D’, giving way to the brief recharging that has sent DXY above it. It’s impossible to say how long the correction will last, assuming it is one, but so far the pullback hasn’t been sharp enough for us to pronounce the recent high a bull trap. That would change if there’s a nasty selloff in the next day or two, but otherwise we should infer that bulls are raring to go.
