Currencies play an important role with precious metals.
Gold and silver either have the tailwind of a weak U.S. dollar or the headwind of a strong U.S. dollar.
This chart looks at another key currency that often moves in different directions than the USD and thus has an effect on precious metals.
It’s a long-term monthly comparison of gold futures (top frame) and euro futures (bottom frame).
Both euro and gold have made important lows at each (1) on the chart. And they tend to come when the euro is testing its long-term uptrend line (2).
Well, that is happening again at (3).
The Question
Will the euro head higher, again, weakening the dollar and provide a tailwind for gold bulls?
Stay tuned.