Gold has violated the $1093 level and the recent support at $1074 decisively. If it is to now develop as a wedge from the December highs we should find support around $1044, the declining angle from the December 22nd low. Obviously, this would also become a test of the March 2008 highs ($1033). So far the break of the support line from October 2008 is looking much like the action in 2008 when it tested the 2006 highs.
Obviously, the rise in the US Dollar is having a direct impact on the nominal US price of gold. We find that the severest part of gold's breaks related to the currency are over seven days after the Dollar Index moves above its 50-week average. We are there now.
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