(H/T Gold Silver Worlds)
Last month we saw this chart–in which the swings in the GoldxUSDX index had formed a triangle going back over a year. At that time we were quite close to the apex.
The last few weeks have been eventful. We saw a clear break below the lower trendline, followed by a bounce up above the upper trendline. It appears a decision has been made.
Barring further smashdowns, it seems we are moving out of the triangle and into a climb. Supporting this is the action of the last few weeks in the chart of USDX vs gold price.
In the last two weeks, we are seeing the impossible–a rise in the gold price and the US dollar.
This isn’t as impossible as it seems–we’ve seen this before, from late 2009 to about mid-2010. It was a good time to be invested in gold equities.