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For many months now I've been warning we were going to
have a dollar crisis and that dollar crisis would drive the final leg up in
gold's ongoing two year C-wave advance. We are now on the verge of the panic
selling stage of this three year cycle.
On Monday the
dollar briefly rallied on the S&P downgrade of US debt (who knew?). That
had the potential to mark the bottom of the current dollar cycle. But by this
morning the dollar has given back all of those gains and then some.
I've noted in
the premium report that the dollar's daily cycle often turns on the
employment report at the beginning of each month. The previous cycle bottomed
one day after the March report and the current daily cycle topped on the
April report.
 
If this
pattern continues then we can probably expect the current dollar cycle to
stretch for another 2 1/2 weeks into the May report (give or take a day or
two either way).
I seriously
doubt gold is going to suffer any meaningful correction as long as the dollar
is in free fall, so I expect we are going to see the gold cycle stretch also.
If the dollar
does continue lower into the May employment report before putting in the
cycle low it would then be set up for a more normal duration decline into the
final three year cycle low due on or around the June report.
However with
the dollar losing it's chance to rally here gold
and especially silver are now at risk of entering a runaway rally.
Details in
last nights subscriber report.
Toby Connor
Gold Scents
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