The dollar’s weakness last week took some pressure off bullion, but will it last? There is promise in the strong impulse leg begun last Tuesday, but we’ll have to see how the second phase of the downtrend interacts with the Hidden Pivot midpoint support shown in the chart (which is tentative at this point, since a new ‘b’ could form). However, if the selloff should reverse without having reached ‘p’, gold and silver bulls should prepare for a soft patch or worse. ______ UPDATE (July 16, 8:32 p.m. EDT): Monday’s rally has shifted the crucial midpoint pivot slightly north to 82.31 (see inset, a fresh chart), but we should still expect it to tell us very clearly whether the dollar is headed significantly higher or lower over the intermediate-to-long term. A decisive breach of this ‘hidden’ support would imply more downside to at least 81.15 (where we would incline toward cautious bottom-fishing in any event). Alternatively, a rally touching 83.12 that has begun from above 82.36 would imply that bulls are solidly back in command and eager to achieve new recovery highs.
