One Week Window
It looks like this next week should be the final spike for the US dollar chart as reflected in the DXY.(I have often stated it is largely a cosmetic ratio that compares the dollar to a few other fiat currencies,ie Euro,Yen,Pound, Swiss) It is important only because everyone watches and talks about it, but in terms of meaning anything in markets it really is pavlovian. When swings occur, it does affect markets, but usually only at the margins. Over time, assets that are suppose to trade with or against the dollar trend, do so as often as they don’t. With that being said, it doesn’t really matter what the dollar does over extended periods of time. The chart says the spike it has been in for months is near an end. There is a lot of economic news and rate setting meetings between today with the ECB and next week with the FED. During this week long window, the dollar should have one more spike that may or may not make a nominal new high. Interesting, but not necessarily earth shattering as far as moving markets are concerned.
Short term maybe but this charts unambiguously says 120
https://schrts.co/fUQVqzYn
Thank you, Fully, for clarifying that with CM. Apparently he is as yet unaware of how chartology works.
Might not be so glib since projected chart targets are just that, projected targets.
So you don’t believe the dollar has any meaningful effect on the price of gold?
Only in the short term and big quick moves it is relected in gold trading. However, in long term trends of either the dollar or gold there isn’t a real correlation. Sometimes they move inversely and other times they don’t.
In short, Sir KenS, no.
Here’s what I posted on Twitter yesterday.
https://twitter.com/roy_rori/status/1567585378974199808
Comments?
GL