Gold / US Dollar Ratio “monthly” Chart
Gold has been a peak asset performer in 2020.
And a weakening US Dollar has fueled the latest surge higher in Gold prices. Higher we go? Or time for a breather?
Today I share one of my favorite charts: The Gold to US Dollar Index ratio (on a “monthly” basis).
As you can see, this ratio is in a long term up-trend, highlighted by higher lows throughout the rally (bullish).
This is a bullish signal longer-term. But short-term, we have a bit of caution.
The ratio is retesting its all-time highs and this month may be forming a bearish reversal wick at (2). Gold bulls would receive a concerning message if the ratio turns lower. Stay tuned!
Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to services@kimblechartingsolutions.com for details to get set up.
Twitter: @KimbleCharting
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
