Historically, Gold has maintained an inverse correlation with the U.S. Dollar.
Today we saw Gold breakout to 1925 and the DXY soar to 106.500.
The emergence of a positive correlation with the U.S. Dollar provides a strong foundation for a continued Gold uptrend.
The U.S. Dollar Index has fallen through 3 Fibonacci Resistance Levels since its 20th-27th September rally.
Lower Bond Yields and weaker than expected GDP are weighing on the Greenback.
US PCE numbers are at their lowest since September 2021 with no surprise in today's print.
Following the recent capitulation of the Gold price, a Harmonic Cypher has formed which, together with the narrowing of the Bollinger Channel, indicates a potential upside movement in advance of US GDP data tomorrow.
Whilst the Macro Bearish Trend is expected to remain in tact (with the Bearish Trigger of 1890.033 becoming resistance) this may present...
Gold posted a low of 1890.60 on 21st August before climbing sharply to the 31st August high of 1976.10.
We are now seeing Gold plummeting back towards to the August low which would complete a full Fibonacci retracement resulting in a solid Bear Trigger.
Discounting the dramatic market fluctuation caused by the onset of Covid 19, the Dollar Index (DXY) can be seen to have traced a full Elliott Wave SuperCycle indicated by the dotted yellow lines from 16th February 2018 to 14th July 2023.
On this analysis, we are in Motive Wave 1 of the next SuperCycle with economists predicting the first Target Rate Cuts...
Following the low of 1939.6 on 29th June, Gold rallied strongly to 2029.3 on 20th July.
The price capitulated, reaching 1914.1 on 21st Aug, then rebounded to 1980.4 on 1st Sept.
Despite coming close on 20th Sept in the lead up to the FOMC meeting Gold did not overcome to the1st Sept high and instead has recommenced another retreat.
The Bearish Triangle...
