🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

If This Resistance Cluster Holds, Gold Could Blast Off

Published 12/11/2016, 12:38 AM
Updated 07/09/2023, 06:31 AM
XAU/USD
-
XAG/USD
-
GC
-
SI
-
DXY
-

The chart below looks at the US dollar/Gold Ratio over the past 30-years. When the ratio is heading lower, USD is weaker than Gold/Gold stronger than USD. When the ratio is heading higher, USD is stronger than Gold/Gold weaker than the USD.

At this time, the ratio in the chart below, has created a Power of the Pattern setup, that is seldom if ever seen.

US Dollar/Gold Ratio Weekly 1986-2016

A rare cluster of resistance is in play for the USD/Gold ratio at (1). Resistance is resistance until broken. If this resistance would hold and the ratio would turn lower, Gold could blast off, which would benefit Gold, Silver and Mining stocks.

What do Gold, Silver and Mining bulls NOT want to see happen? If the cluster of resistance is taken out to the upside (USD stronger than Gold), metals could get crushed.

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.