Is The Gold Rally Stalling Out In August?

gold to us dollar ratio reversal lower concern bearish precious metals chart august 20

Gold / US Dollar Ratio “monthly” Chart

Gold has been a peak asset performer in 2020.

And a weakening US Dollar has fueled the latest surge higher in Gold prices. Higher we go? Or time for a breather?

Today I share one of my favorite charts: The Gold to US Dollar Index ratio (on a “monthly” basis).

As you can see, this ratio is in a long term up-trend, highlighted by higher lows throughout the rally (bullish).

This is a bullish signal longer-term. But short-term, we have a bit of caution.

The ratio is retesting its all-time highs and this month may be forming a bearish reversal wick at (2). Gold bulls would receive a concerning message if the ratio turns lower. Stay tuned!

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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.

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