Gold Long first Quarter 2017

For this trade to hold correct it is crucial that the Dec 15 lows do not get penetrated. As we can see from the chart, this basically classified as a yearly cycle low which since 2013 has always taken place at the end of each calendar year. If these lows hold, which i expect they will, this will mean that we have finally broken pattern of lower lows since 2012.

To further substantiate by quoting indicators that advocate upon the stance:

A) Entering in to a period where the inverse correlation between dollar and gold proves to be strong.

B) Dollar has reached a 13 year peak and showing signs of a reversal from that point for the time being I think it will trade with in a range till the next contraction execution by the FOMC the time and pace which needs to be determined.

C) Yields are beginning to decrease.