Is the Gold to US Dollar Ratio Setting Up for a Major Breakout?
Chris Kimble | Dec 07, 2023 18:05
Precious metals prices have been creeping higher with Gold trading over $2000/oz.
A weaker US Dollar has provided a nice tailwind and Gold bugs celebrated a new monthly closing high last week. So, is it time for Gold to finally break out to new all-time highs?
Well, today’s “monthly” chart of the Gold to US Dollar ratio highlights one more major hurdle.
As you can see, the ratio remains inside of a long-term falling channel. And the overhead resistance (see red arrows) is very heavy.
The gold/U.S. Dollar ratio is once again (the 5th time!) testing this falling channel resistance at (1).
In my humble opinion, this ratio needs to see a breakout for Gold to really rock and roll to the upside.
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