Gold is often seen as a hedge against inflation, which is why gold trends to trade inversely to the dollar. However, as we have seen recently, gold is beginning to rally despite the dollar’ s strength.
And even with the dollar having a really big day on Tuesday, gold still managed to rally.
Tuesday was day 33 for the daily dollar cycle. Which places the dollar in its timing band for a daily cycle decline. Gold may be sniffing out a top to the dollar’s daily cycle. Gold may also be sniffing out the top to the dollar’s intermediate (weekly) cycle, as well. I plan to cover the dollar’s intermediate cycle in this week’s Weekend Report. And if the dollar does roll over into an intermediate cycle decline, that should provide the tail wind necessary for gold to break above the dual resistance of the 200 day MA And the 50 day MA to begin a trending move.