Thursday , 23 May 2024

Price of Gold Reacting to Renewed Weakness in U.S. Dollar Index – Take a Look

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A month ago it looked like the U.S. Dollar Index would crash through its 1-year support line. Instead, the index bounced off it like an Indian rubber ball (remember?) and, in the process, hurt the price of gold and silver. That seems to have reversed in the past few days. Take a look at the charts. Words: 431; Charts: 2

So says Lorimer Wilson, editor of  editor of (A site for sore eyes and inquisitive minds) and (Your Key to Making Money!).

The 2 charts below are from  Chris Kimble and show the “now” and “then” movements of the U.S. Dollar Index.


a) The U.S. Dollar Index closed out on Tuesday at 80.35 DOWN marginally from 80.50 last Friday and but is still above its 50-day moving average of 80.22.

b) Gold closed out on Tuesday at $1,659.10 UP marginally from $1,658.40 the previous Friday but is still marginally below its 200-day moving average of $1,662.91.



a) USD Index: The long-term chart below showed a potential bearish Head and Shoulders pattern which did not materialize. On Thursday, December 20th, the U.S. Dollar Index closed at 79.26 (intraday low of 79.01) marginally below its 50-day moving average of 80.16.

b) Gold Price: Gold closed December 20th at $1,645.90 (intraday low of $1,636.00) well below its 200-day moving average of $1,663.07.


The Future

a) Check out this chart for the daily U.S. Dollar Index moves as the days unfold and

b) this chart for a look at gold’s performance over the next few days.

Note: You are also encouraged to read Rick Ackerman’s excellent article on the above subject entitled Bullion vs. the Dollar: Three Scenarios.

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Related Articles:

1. U.S. Dollar Index Takes a Breather on Way Down & Through Its Support Line – What Will Tomorrow Bring?


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