In the chart below, the Gold/Dollar ratio trend is clearly
rising (which has been a positive for Gold). However, you’ll
also notice to factors that appear to be headwinds for gold going
forward: (1) The rising trend is at a confluence of
price resistance points. As well, it is testing the top of its
3-year trading range. (2) At the same time that the
Gold/Dollar ratio is hitting price resistance, it is also seeing
momentum hit levels last seen near the 2011 highs.
The takeaway: A “lasting” breakout above this level
may require a momentum reset (i.e. a breather for gold first). And
with other charts showing the U.S. Dollar oversold, this may be in
the cards. Gold investors & traders will no doubt want to want
to keep an eye on this ratio.
Gold / U.S. Dollar Ratio
“Weekly” Bar Chart
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Kimble - Gold/Dollar ratio trend
Posted by sbaxman111 on 14th of Sep 2017 at 10:14 am
In the chart below, the Gold/Dollar ratio trend is clearly rising (which has been a positive for Gold). However, you’ll also notice to factors that appear to be headwinds for gold going forward: (1) The rising trend is at a confluence of price resistance points. As well, it is testing the top of its 3-year trading range. (2) At the same time that the Gold/Dollar ratio is hitting price resistance, it is also seeing momentum hit levels last seen near the 2011 highs.
The takeaway: A “lasting” breakout above this level may require a momentum reset (i.e. a breather for gold first). And with other charts showing the U.S. Dollar oversold, this may be in the cards. Gold investors & traders will no doubt want to want to keep an eye on this ratio.
Gold / U.S. Dollar Ratio “Weekly” Bar Chart