Gold Bulls Have Fingers Crossed that the Buck Stops Here!

Chris Kimble

Over the past year the US Dollar has made a comeback, rallying over 10 percent off its February 2018 lows.

King Dollar is at a crossroads, though. And investors should take note, as other assets (commodities like gold, silver, oil, grains, etc) are likely to react to the Buck’s next move.

The BIG question at hand:  Is this a reactive rally that will make a lower high (vs the December 2016 high), or is this rally just getting starting on its way to making new highs?

In the chart below, we highlight a key resistance level that will likely go a long ways in answering that question.

The US Dollar rally is closing in on dual resistance (1) marked by its falling upper trend line and recent high.

Gold bulls are hoping that this resistance holds and turned the Dollar lower.

A breakout above 98 on the US Dollar Index would send a negative message to the precious metals space.

US Dollar Index “weekly” Chart

us dollar index rally testing resistance trend line chart february 14

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.