Gold moved up toward the top of its current trading range last week, building support within the current bull market. It closed the week at $1,753 per ounce (see the following chart). In last week’s article , we looked at the historical inverse relationship between the price of gold and the strength of the U.S. dollar. This relationship may be especially important to consider now as analysts forecast a steep decline in the dollar. According to CNBC , “Stephen Roach, one of the world’s leading authorities on Asia, is worried a changing global landscape paired with a massive U.S. budget deficit will spark a dollar crash. “‘The U.S. economy has been afflicted with some significant macro imbalances for a long time, namely a very low domestic savings rate and a chronic current account deficit,’ the former Morgan Stanley Asia chairman told CNBC’s “Trading Nation.” … ‘The dollar is going to fall very, very sharply.’ “His forecast calls for a 35% drop against other major currencies.” If this comes about in the next few years, it could provide a significant boost for gold priced in U.S. dollars. Rick Andrews is president of Avant Capital Management.