Gold and gold miners have been easing lower. And they could still have lower to go. But let me show you where we see the seeds of gold's potential next leg up. And that would be in the next downleg of the US Dollar. We'll look at the chart of PowerShares DB US Dollar Index Bullish (UUP) that I've been following for a while.
It sure looks like a bear flag may be developing in this chart. It's not a perfect bear flag, but it fits if you look at it as a continuation of a larger downtrend. Flags and pennants are short-term patterns that can last from 1 to 12 weeks. Now, every sunken ship has a chart. But if this works out, it would see UUP go down to target level 2. That, in turn, would send gold higher.
This is not investment advice. You're in charge of your own portfolio and your own investment destiny.