opinion

Time for a softer dollar?

Kitco Media
By Jonathan Da Silva
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Kitco Commentaries
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Featuring views and opinions written by market professionals, not staff journalists.

The gold price is being squeezed between its rising support line and its 200-day moving average. The chart below shows that over the past year, when bulls have successfully defended support, the squeeze has lead to a very tradeable rally on the long side. Should a downside break occur, bulls may find support at the $1,785 level for starters.

It seems as though a bounce in stocks is underway; this may be the one that tests the bears' conviction. The SP looks ready to move back up to test resistance at its 50-day moving average (orange), coinciding with what may become minor resistance. Should the index breach to the upside, the next level is likely the 200-day moving average (blue) in what could become major resistance as it coincides with the top trendline.

Another look at the dollar shows that it may also be ready for an encounter with its moving average (or averages)?; which would be to the downside. The dollar has found resistance at the top of the channel we have been presenting for some time.

Thanks and have a great weekend,

Kitco Media

Jonathan Da Silva

Jonathan Da Silva developed a passion for hard money and economics from a young age having been influenced by family who sought to teach me that "nothing is free", and the importance of intrinsic value early on. My interest in markets grew keener during the great financial crisis of 2008; leaning on family with vast trading experience, I began to self-educate on technical analysis and economics- drawing inspiration from the works of individuals like W.D. Gann and Adam Smith. I have been a proud member of the Kitco team since 2017 and hope that my writing inspires readers to consider an objective view of the metals, and the greater financial markets.

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