Gold Market Wire
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Gold Gains As US Dollar Challenge Takes Shape
January 20, 2021 - (Gold Market Wire) - Gold has developed a small inside rally as the US Dollar prepares its next challenge. On the Gold side of things the chart sets out the parameters.
So, an inside rally bumping against the 50-day... the resolution of which may provide some guidance.
Certainly the new Treasury Secretary, former Fed Chief Yellen and her "Go Big" outlook have helped the market in the short term, but it is the outlook for the US Dollar which the market is focused on right now. Technically, we can see why.
The next move in the Dollar will direct the market. The Dollar Bears are still in the majority. And that makes them vulnerable. And Gold as well. The dollar's retreat from the 50-day mov. ave. has emboldened many that the little retracement rally is at an end...but we're not so sure. Still, somewhere along the line, we feel that it is entirely possible that the Dollar and Gold could rally together...despite what the correlation crowd says.
In the short-term we await the resolution of the Dollar chart above.