Why I'm buying gold for the first time since the election

I've been bearish on gold, to say the least. After a 7 percent slide since its April high, it's lost a bit of its luster.

But the setup has strengthened, and I'm buying what I like to call "the most expensive doorstop" in the world for the first time since the 2016 U.S. presidential election.

The dollar has rallied strongly in recent months, depressing gold. The U.S. dollar index has risen 3 percent this year, rising just below the 95 mark in Thursday trading. Gold has become oversold, and the short-term move is compelling here; the metal's relative strength index has sunk to 26, indicating an oversold environment.

The catalyst for the break in gold prices was this strength in the greenback, highlighted by the dollar's bullish "golden cross" when its 50-day moving average crossed over its 200-day moving average earlier this month.

The dollar popped just after that happened, weighing on the dollar-denominated gold.

Turns out, it wasn't so such a "golden cross" for gold after all.

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