Gold regained a bid from the losses the last weeks thanks to safe haven demand after the terrorist attacks in Paris. Gold ended lower 12 out of the last 13 sessions and is a little bid oversold. But a stronger dollar can put the gold price under pressure again in a few days.

The US Dollar index is on the rise again and nearing 100. The US$ index has spent much of this year consolidating and digesting its huge advance from summer 2014 into 2015. After surging nearly 25% within eight months, the greenback has managed to hold above previous resistance (2004-2005 highs and 2008-2010 highs).

This could put pressure on gold and silver when the US Dollar index breaks 100 again. From a technical analysis perspective, the chance to break 100 is big. This means a bearish outlook for precious metals.

The swift decline over the past few weeks confirms that the recent rebound was essentially a retest of the summer breakdown to new lows. When a market breaks a key level it will often retest that break in a counter trend move. The break is confirmed when the market reasserts itself in the direction of the break. That is precisely what has occurred in Gold and Silver over the past few weeks.

Is there any good news for gold and silver? YES!

When gold crashes $1.000 or less, the odds rise significant this is the last capitulation. Gold will be oversold, sentiment will be extremely bearish and the gold price will find support on key levels $970 or $890. This will mark the end of the bear market while nobody notices. This will create an opportunity of a lifetime.

Source: Goldseek