GOLD:XAUUSD Gold broke out of a 6 year long downtrend on Friday

XAUUSD: Gold Friday was a very special day for XAUUSD: it broke above a six year long down-trend that's been in play ever since the high was reached in 2011. All it has to do on Monday is hold above that line and not get sold off - gold should then rally to 1301-4 range. But it also looks as if it could well push higher by about $90 or 7% from here once it's proved it's strong enough to stand above the big dividing line come Monday. Why would it do this? Break 6 years in a downtrend...could it be that Comey has knowledge of the fact that the President (indirectly obviously) laundered/legitimised red-hot Russian money via his golf empire - stable assets scattered all over the world for the ultimate hedge - likely arranged at arm's length by the super smart Jared. This arrangement suited the Russians and it suited the President - and that's how Jared made his bones with the Prez. That much seems obvious even from this side of the pond. The question is: does Comey have any evidence? He's certainly got motive now. Who would call the guy he's fired a 'nut-job' ? Except either a nut-job...or someone so confident he's bullet-proof because...again he's mad or really does know that Comey has nothing on him. Now Comey has to make his mark - has to show the world he's not a nut job. The stage is set. The world, not just America, awaits Thursday with baited breath. And markets don't like uncertainty, do they? And loss of confidence in the Trump ideals will spell loss of confidence in the Dollar and on the other side of the coin, a mini-flight into Gold. Maybe this is what the gold chart is hinting at. Time will tell

Comment:

Gold is going well if long at this point. But it really depends on a weak dollar to stay good from here. Really need to see DXY break today's so far double bottom...think it's just Europe not thinking about Comey yet and it'll take US to tune them in...or does his testimony not matter? ?? But that double bottom on DXY is the fly in the ointment for this long-gold trade so far today. If you've been watching or closed out due to to DXY holding up it's understandable...DXY in near term neutral - I believe US will sell it - but could be so wrong here if that double bottom holds - so it's twitchy here. ..If we see DXY break below the lows today this trade and all USD plays should stay good. So follow that trend. Suspect Europe has other concerns than Comey and US will remind us of that via USD. But I will be wrong if DXY breaks above 97.00 - spike high today 96.94 - so am little out at 96.90 and therefore need to cover this. Long story short: Gold, Copper and short USDEUR remain good whilst DXY under 96.95 ideally and because of chance of whipsaw and evidence of resistance at 96.97 it seems sensible to say whilst below 97.00 at absolute highest today. Don't think it will happen unless you guys have discarded Comey...have you ??? and look to increase positions on DXY falling below today/Friday nearterm double bottom at 96.68 - right now USD a sell v EURO on this index reading at 96.93 with stops above 97.00.