When the U.S. Dollar is rallying and at full strength, it is a clear headwind for precious metals like gold and silver.
But when King Dollar loses his crown and is weakening, it is a clear tailwind for precious metals.
Today’s chart of the U.S. Dollar Index highlights why we are at a key decision point. And whichever way the Dollar breaks should decide the fate of gold and silver over the coming weeks and months.
As you can see, the U.S. Dollar has stalled out at its recent highs and 38.2% Fibonacci retracement level. This stakeout is also occurring at the prior 2023 highs and may be forming a double top pattern.
If this level holds as resistance, then gold and silver may rally. But if the U.S. Dollar breaks out, it would be bad news for precious metals like gold and silver.
It is very possible that this is a key price point for King Dollar and precious metals. Stay tuned!
U.S. Dollar Index “weekly” Chart
Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to services@kimblechartingsolutions.com for details to get set up.
Twitter: @KimbleCharting
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.
