Dollar breakdown makes gold a buy today
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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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.