Goldtent Odd Couple Challenge
We all know Gold (and all Commodities) tend to be closely and inversely co related with the US Dollar Index
Personally I am waiting ( and have been for a LONG TIME) for the time when Gold doesn’t give a rats asp
what the Dollar is doing.
IF we are going to rally here and a real Bull has begun…It would be great to see gold rally even IF the Dollar goes up
Since the Dollar Index ran hard and fast from 80 to 100 we have been chopping around in a range 93 to 100
last week we broke DOWN from this range to 92 and things looked very promising for Gold
But we bounced ( in hind sight we had to bounce…see chart) and are now back at the low end of the range
One Principle of Chartology is that when a Good Pattern breaks down and then reverses…we usualy get a strong move in the Opposite direction.
It is certainly possible , perhaps even likely, that the Dollar will do this and perhaps climb back to the top of the range at 100 . (Shoot the messenger)
Can Gold Rise with the Dollar ..at least for a while ?
Would love to see a few of You Bright Original Thinking Technical Analysts go back and see how and when there were Periods like this .
I am tired of “hoping” for the Dollar to drop when we are Long PMs or to Climb when we are short.
The Odd Couple ? Is there a chance ?
TIA
Fully
Fully, you have outdone yourself once again. What a Great chart!
Might have to have this one framed for the office as a “Fully Original” LOL. 😉
Hi Fully we know for a fact there is heavy speculation in PMs indicated by last week’s COT report with figures that reflects Tue EOD positioning IMHO The large specs are positioning themselves ahead of crappy NFP numbers so it’s basically buy the rumors and sell the news Let’s not forget there’s also heavy speculation in the FX markets too which probably explained why USD Index rebounded strongly last Fri i.e Short covering? Not sure if anyone looked at the 4 min candle action in USD Index right after announcement of NFP There are no visible drivers behind USD on the horizon so it’s not unreasonable to expect USD to resume it’s downtrend soon. PMs had faltered somewhat but the strong miners action last Fri should lead the PMs higher Again this is only my humble opinion.
Unfortunately it seems that the PM world is still slave to the greenback! 🙁