With the U.S. Dollar Index recently falling to the 95.5 level and investors unsure where gold and silver are headed from here, today King World News shares a fascinating piece which features a key illustration about what is really happening with the price of gold.

By Louise Yamada, Founder of Louise Yamada Technical Research Advisors

June 4 (King World News) – "Gold – Unresolved, But Weak … Gold Spot price (GOLDS-1,190.55) hasn’t budged much and is still holding between a series of lower highs, below the 2005 uptrend, and support at the 1,138 low from 2014 (see Figure 29, left). A lift through the downtrend at 1,271, or a break of support at 1,138 should determine the next move. The structural bear market remains in place technically for Gold.

Figure 29. Gold Spot Price (Monthly)

KWN Yamada 7:4:2015

Both momentum models, weekly and monthly, are negative but flat; the descending triangle traced out since late 2013 suggests resolution to the downside. The next risk, with a break of support, retains the target of 1,000 which represents support from the 2008-2009 consolidation (see oval). A measured move from the back of the triangle projected down from current levels arrives at 1,026 and corroborates the next target / support." This was a small portion of Yamada's 50 page report.  To subscribe to Louise Yamada Technical Research Advisors CLICK HERE.

***ALSO JUST RELEASED: WARNING: Western Central Banks Are Now On The Verge Of Losing Control CLICK HERE.

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