Below is a combo chart that shows gold in 5 different currencies. As you can see they all have a nice consolidation pattern that they have all broken out of  except the Australian dollar, but its getting close. The one to keep an eye on is the Yen which is leading the breakout. The Yen is trading back up to its all time high in gold whereas the US dollar is still some distance below the 1920 high.

Gold in other currencies.

After getting whipsawed back and forth over that big neckline, that I’ve shown on the dollar, it looks like the pattern is finally showing itself. Below is a 9 nine month daily chart of the US Dollar that is showing a mature looking H&S top. This chart doesn’t reflect today’s action as the dollar is down again today to 78.34 which would put it below the neckline. This is the best case scenario we could ask for in regards to the precious metals complex. The stars are lining up for a good move in the metals and PM stocks.

US Dollar H&S top in place.