Gold climbs to new high as markets continue reaction to dollar weakness

Although the dollar didn't poke a new low - yet - gold poked a new high and the yen and other currencies moved higher. So equities moved up too, of course! My updated SPX daily chart below shows that it tested trendlines both at the intraday high and the close. The yen has moved back above 111.49 in $XJY which is critical and should point it much higher. So we'll see if the dollar index tests down to 74.75 or 73.58. These scenarios may be consistent with my upside target for gold at 111.92. As for equities, I'd like to see the SPX continue higher through the coming days, and at this point it seems likely that the 1041 area should be important to remain above as it makes another effort to rise over 1060/1063. Will see! Remember though, we're not expecting this rally leg to last past the 2nd or 3rd week of October - so tread , and trade, as carefully as ever.