Marc Faber says Dollar Has Bottomed

It looks like we can add Marc Faber to the list of dollar bulls now in addition to Bob Prechter of Elliott wave International and James Mound of the Mound Report.  Gosh, I tell you these three market mavens have a lot of experience under their belt and have made some superb calls in the past.  They make some very good points on possibilities for dollar bullishness. The extreme bearish sentiment in the US Dollar right now is just one of the points and there a bunch of others.

I don’t mean to obsess so much on the US Dollar, but the problem is many times the currency markets movements can have large effects on broad market stocks and gold.  The currency is the life blood of commerce after all.

I know that a lot of gold followers are very eager to see an upside breakout in the gold price above 1000.  I would also like to see that and I have talked many times about how a potentially very bullish scenario was developing based on the 30 year gold chart and also the chart from March 2008 time frame.

But am I completely wrong on the bullish gold breakout scenario ?

You will know the parameters that will make my call either wrong or right in the weeks ahead. And most of the determination relies on a somewhat large symmetrical triangle that gold has been building since February 2009. 

Is it really possible that the gold price is going to be able to achieve a breakout before the dollar gets enough footing for a big move higher?  That would be the most preferred scenario to keep gold bullishness intact.

By the way, not everyone is bearish on the gold price and bullish the US Dollar.  David Bensimon, a very intelligent man, who has made some outstanding calls in the past (the oil bottom and then peak was one) is still bullish on gold and looking for new all time highs.

If I am wrong on my bullish bias on gold, then I will admit it and cover it here. And I will re analyze the future possible scenarios and setups with the gold price.

I might be a little upset about it, but then,… I will move on…

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