Gold Bulls Want A Weaker USD
Gold for nearly a decade (2000-2011) was much stronger than the U.S. dollar, reflected at (1) below. Since the ratio peaked in 2011, it has created a series of lower highs along falling resistance (2) in the chart below.
Thumbnail credit investing.com
A counter-trend rally has taken place since last year, pushing the ratio up to the underside of falling resistance line (2) at (3).
Gold has run out of steam for the past few years along line (2) and we will see if it’s different this time around at (3).