Black Friday Sale! Save huge on InvestingProGet up to 60% off

Gold Bulls Want A Weaker USD

Published 07/11/2017, 11:06 AM
Updated 07/09/2023, 06:31 AM
XAU/USD
-
DX
-
GC
-

Gold for nearly a decade (2000-2011) was much stronger than the U.S. dollar, reflected at (1) below. Since the ratio peaked in 2011, it has created a series of lower highs along falling resistance (2) in the chart below.

Gold Vs. USD

A counter-trend rally has taken place since last year, pushing the ratio up to the underside of falling resistance line (2) at (3).

For gold to break free of this 6-year falling trend it needs to breakout at (3). Gold bulls do NOT want to see this ratio peak at (3) and start turning lower.

Gold has run out of steam for the past few years along line (2) and we will see if it's different this time around at (3).

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.