Gold Market Wire
News, analysis and commentary for gold traders and investors
US Dollar Makes Another Leg Higher
February 2, 2020 - (Gold Market Wire) - The US Dollar, much maligned by the Goldbugs, is getting ready for another move higher, as the chart action breaks down vs the Euro.
About all you can say is "read 'em and weep". The Dollar rally continues, as we have warned for several weeks now. The round number of 1.2000 is a tehnical point and we may pause there, but, right now, the mettle of the Dollar has been shown. Gold, still hovering around $1850, is hanging on, and actually doing a decent job (so far) of not running for cover. This is lending to the general air that our theory of a strong Dollar and higher Gold prices can play out over the next two years. We do acknowledge, however, that a big Dollar rally can still impact the price, and is why the sidelines are the preferred postiion in Gold.
This is a tough one for Gold Bugs. The action is in the Dollar fx-cross world, and if you are "convinced" that the US Dollar is finished, then, of course, you don't get to play. That is why there is no place for ego in trading. Since the start of the year the trade has been to be long the Dollar, with an objective, open mind. If you want to take on the currency markets in a battle of wills, you will wind up in the poor house.