U.S. Dollar Breakout or Breakdown? Gold Bulls Want to Know!

us dollar currency analysis important indicator gold bulls precious metals forecast_april 23

US Dollar “Monthly” Currency Chart

The US Dollar is always on Gold bulls minds. A weak dollar tends to be a tailwind for Gold prices while a strong dollar tends to be a headwind.

Well, the US Dollar Index is nearing an important juncture and Gold bulls should be watching here.

As you can see in today’s chart, King Dollar has been inside a rising channel for 10 years. The Dollar peaked in early 2017 offering Gold bulls some breathing room as it pulled back.

Recently, the US Dollar and Gold have been rising together.

The US Dollar is testing its 2017 highs this month at (2)… Something’s gotta give! A breakout to new highs for the US Dollar would be bearish for Gold bulls, while a breakdown here would be bullish. 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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