After Donald Trump bemoaned the strength in the dollar, the price of gold jumped in reaction.
The last time gold tested its present resistance line, I was less optimistic about its ability to overcome it. However, as technicians like to say, the more times resistance is tested the weaker it becomes.
And, as my friends at Nautilus recently pointed out, the dollar is possibly following a pattern very similar to that near the 2002 peak. If Donald Trump get his way and the dollar peaks and reverses right here, gold will almost certainly break out. This would officially end its 6-year bear market.
Finally, from a fundamental standpoint, precious metals have perhaps never been cheaper relative to financial assets than they are today. In other words, once the price does break out there is plenty of potential to the upside.