Who's Afraid of the US Dollar?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Charts courtesy Stockcharts.com.
At the top of the chart we track the price of gold, while below it is UUP the US Dollar Index. Although they usually trade opposite to each other, during the past few months they have travelled ‘in tandem’.
Featured is GNX the commodity index. Price has broken out at the neckline of an inverted head and shoulders pattern (blue arrow). The target for this breakout is at the brown arrow.
The supporting indicators at the top and bottom of the chart are positive.
Featured is GDX the miners ETF. The green arrow points to an upside reversal, at the bottom rail of the rising channel. The moving averages are in positive alignment. A breakout at the blue arrow will likely mark the start of the next rally.
Featured is a chart that compares gold mining stocks to the S&P 500 index. Price produced an upside reversal Monday, right at the bottom rail of the rising channel. The supporting indicators are at support levels. A breakout at the blue arrow will be bullish for miners and bearish for generic stocks.