Dollar breakdown makes gold a buy today
Updated
The dollar index appears to be breaking below its upward-sloping trend line.
If it follows through on this breakdown, gold is a buy. Gold is cheap today, so it's a good day to get in for a rally.
The dollar is breaking down due to Fed balance sheet expansion and expectations of an interest rate cut.
If it follows through on this breakdown, gold is a buy. Gold is cheap today, so it's a good day to get in for a rally.
The dollar is breaking down due to Fed balance sheet expansion and expectations of an interest rate cut.
Note
Watch for the dollar to close a bar below the trend line before buying gold. It's pulled back above the trend line and is debating whether to follow through.Note
For now, DXY failed to close a bar below the trend line. There may be a repeat of this attempted breakdown soon, so keep an alert on the trend line.Note
Slowly but surely, the dollar is breaking down.Note
With earnings coming in stronger than expected, a member of the Fed just announced that no more rate cuts are needed this year. That's good for the dollar, bad for gold. I took profit here.
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