Gold has dropped nearly $35/oz. in the past few days. The bull market continues, however. I will be looking to buy again when the market appears to find a bottom.Despite this, I noticed that gold failed to reach the upper trend line on the daily chart (not shown) before reversing downward. This suggests to me that the yellow metal is possibly losing its momentum. If stocks and the Dollar rally together, gold will probably be a victim. (Surprisingly, the Dollar is down today, which usually causes gold to rally. There are always surprises in the futures markets.) Perhaps the news today that the U.S. Senate may reach a more balanced accord on economic stimulus between Republicans and Democrats is humbling gold's recent bullish character. Is gold losing its luster?
