Gold Market Wire
News, analysis and commentary for gold traders and investors
Staking out the Dollar Challenge
February 19, 2021 - (Gold Market Wire) - The US Dollar is touching down on support as we meet the first test for the retracement move against the Euro. The chart sets out the picture:
A little bit of a showdown is in the offing, and the resolution should be interesting. There's no doubt that 1.215 has been an important point in this market lately. Late in 2020 and early 2021 it served as resistance - and has recently been a solid line of support for the Dollar (remember: it's an inverted chart). We haven't had a close above it since January 26.
Back at our favorite market of the moment - the Gold/Silver ratio - we have had further downside action. Silver is hanging in like a trooper and the 1.5% fall - on a diff no less - is a lot of 'wedge'. This market is where the action is...and is much more profitable than trying to buy dips in the outright.
The action on the ratio is all in the Silver gain... while Gold goes flat.