Gold intermarket: Harry Dent says, "Gold goes down!"

After an initial rally on Monday, Gold is selling off and testing the 20 sma on the hourly chart in the wake of a continuation of the 6th week in succession of misfortune for the bulls with the price hitting the lowest level in over 10 months a week ago at $1,122 oz.

The minor recovery to $1,142 is stumbling on the ascent in security yields that undermine the quality of holding non-yielding gold and silver. The pension funds can't use gold as an investment as it doesn't pay a dividend and they need yield and income, not just wealth. All the more critically, the Fed was far more hawkish than markets had expected when they raised their growth forecasts and dot-plot from two hikes in 2017 to three. This sent the buck surging and weighed on valuable metals that are pegged to the dollar's esteem, such as gold.

In a recent panel, that you can watch in full below, at FXStreet, Harry Dent was asked what his opinions are on the dollar and Gold, he argued the case for a stronger dollar in the near term and targets "at least" 120.00 DXY, and "...gold goes down!", adding, "Deflation instead of inflation is bad for gold."