Courtesy of Read the Ticker.
Well for the last decade, anyways!
Chart below is a weekly chart of GLD and DXY.
As shown below powerful moves in the USD (DXY) do not send gold crashing. The USD looks like it is completing a A-B-C correction. Once the C is done, and the DXY falls, gold will do well. How much longer for the DXY? The strong rally may last 3 to 5 weeks more, and then will stall and start to consolidate, what happens after that will be very interesting.
The main point is that US dollar strength is not trashing the gold trend, this is good relative strength and shows bulls defending the long term trend. When excitement runs out for the DXY the GLD will do well.
A note to members, we must see strength enter the gold market and a confirmed sign that behavior has changed from selling to buying.
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Investing Quote…
..”Being in the market at all times is not the key to profits. Being in the market when there is a clear, unconfused technical signal, and the trader’s judgment is not swayed by emotion, is the method for trading success”..
Richard D Wyckoff
..“It’s not what you own that will send you bust but what you owe.”..
Anon
