Friday , 20 October 2017


Price of Gold Reacting to Renewed Weakness in U.S. Dollar Index – Take a Look

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A month ago it looked like the U.S. Dollar Index would crash through its 1-year support line. Instead, the index bounced off it like an Indian rubber ball (remember?) and, in the process, hurt the price of gold and silver. That seems to have reversed in the past few days. Take a look at the charts. Words: 431; Charts: 2

So says Lorimer Wilson, editor of  editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!).

The 2 charts below are from  Chris Kimble and show the “now” and “then” movements of the U.S. Dollar Index.

Now

a) The U.S. Dollar Index closed out on Tuesday at 80.35 DOWN marginally from 80.50 last Friday and but is still above its 50-day moving average of 80.22.

b) Gold closed out on Tuesday at $1,659.10 UP marginally from $1,658.40 the previous Friday but is still marginally below its 200-day moving average of $1,662.91.

CLICK ON CHART TO ENLARGE

Then

a) USD Index: The long-term chart below showed a potential bearish Head and Shoulders pattern which did not materialize. On Thursday, December 20th, the U.S. Dollar Index closed at 79.26 (intraday low of 79.01) marginally below its 50-day moving average of 80.16.

b) Gold Price: Gold closed December 20th at $1,645.90 (intraday low of $1,636.00) well below its 200-day moving average of $1,663.07.

CLICK ON CHART TO ENLARGE

The Future

a) Check out this chart for the daily U.S. Dollar Index moves as the days unfold and

b) this chart for a look at gold’s performance over the next few days.

Note: You are also encouraged to read Rick Ackerman’s excellent article on the above subject entitled Bullion vs. the Dollar: Three Scenarios.

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Related Articles:

1. U.S. Dollar Index Takes a Breather on Way Down & Through Its Support Line – What Will Tomorrow Bring?

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The U.S. Dollar Index took a breather on Thursday on its apparent way down and through its support line of 79.00 closing the day at 79.26 vs. 79.27 on Wednesday well below its 50 day moving average of 80.16.

2. Gold Crashes Through Its 11-year Channel Support Line! How Low Will Gold Go Now?

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Gold has done it! It took 11 yearrs but it finally (albeit unfortunately) crashed through its channel support line of $1,690.00 and 200-day simple moving average of $1,663.07 to close out Thursday at $1,645.90 (with an intraday low of $1,636.00) down $22 from the previous day. Tomorrow is December 21st, 2012, the day the Mayan calendar predicted the world would experience an apocalypic event, so might we be in for a further major decline (just kidding) decline?

3. Update: Gold & Silver to Drop to $1,675 & $30.50 by End of 2012 Before Going to $3,950 & $117 by End of 2013!

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5. Bull Markets Always End With a Bang, Not a Whimper, So Gold’s Run Should Have More Legs

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[Here is a summary of my]…thoughts on the 2011 gold price peak relative to the last time a long term bull market ended (back in 1980): Long-term bull markets almost always end with a bang, not a whimper, and last year’s price peak was clearly the latter. A 25% rise over a period of about two months last year [does not an] end-of-cycle, blow-off top [make]. No, I think there’s still some room to run for gold if for no other reason than that we haven’t even come close to the “mania” stage that characterizes the end of long-term market moves…[Let me explain further.] Words: 359; Charts: 1

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