Chart of the Day: Gold Breaks Out

Someone just sent me this chart, which shows gold's recent breakout nicely.

The chart is actually the gold ETF (GLD), but its recent breakout completes a technical pattern known as a reverse head & shoulders. You can see the head and shoulders below identified by the price boxes in December (the left shoulder), February (the head), and March (the right shoulder).

This is a positive breakout, and with all the questions about various currencies in today's environment, it makes sense that investors as well as central banks are increasing their gold holdings as they percieve it to be a good store of value.

Since gold often trades inversely to the dollar, I wonder how this bullish implication for gold will play out in terms of the near-term path for the US dollar?

long GLD