The price of gold has been moving sideways-to-lower for months now.
But this consolidation is nearing a potential inflection point.
Today’s chart 2-pack highlights the long-term relationship between the euro currency and the price of gold. And, as you can see, moves in the euro tend to affect gold (whether short-term or longer-term).
When the euro peaked in 2008, it lead to a short-term gold hiccup. And the euro trading top (retest of highs) in 2011 also marked the top in gold. The euro bottomed in 2015-2017 along with gold as well.
So, what’s going on right now? Well, both the euro and the price of gold have been in multi-year up-trends recently (see trend lines below). But those trend lines are being tested right now!
This is an important test of support. Gold and euro bulls are hoping support holds here! Stay tuned!