Precious Metals Eyeing Breakout Despite U.S. Dollar Strength

Published 02/23/2020, 12:22 AM
GC/DXY Weekly Chart

Gold and silver prices have been on the rise in early 2020 with investors turning to precious metals as geopolitical concerns and news of coronavirus hit the airwaves. The rally in gold has been impressive, with prices surging past $1600 this past week (note silver is nearing $18.50).

What’s been particularly impressive about the gold rally is that it has unfolded despite strength in the U.S. dollar.

In today’s chart, we look at the ratio of gold to the U.S. Dollar Index. As you can see, this ratio has traded in a rising channel over the past 4 years. The Gold/U.S. Dollar ratio is currently attempting a breakout of this rising channel at (1).

This would come on further Gold strength and/or U.S. dollar weakness. Gold bulls are hoping for a breakout. Stay tuned.

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