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Gold Bulls Eye Critical Support

Published 06/20/2017, 11:03 AM
Updated 07/09/2023, 06:31 AM

Below looks at the Gold—US Dollar ratio on a weekly basis over the past decade. The ratio peaked in 2011 and has created a series of lower highs. The ratio looks to be testing a very important price point that could be important to gold Bulls.

Weekly Gold-Dollar Ratio

The ratio has experienced a counter-trend rally over the past 6 months, taking the ratio up to triple overhead resistance at (1) where it has stopped on a dime.

The ratio has been a little weak the past couple of weeks after testing resistance at (1). That weakness has the ratio testing 7-month rising support at (2).

  • Bulls want/need to see the ratio breakout at (1), to send a bullish message that has been absent for the past 6 years.
  • Bulls want/need to see the ratio hold at (2). With the trend being down (lower highs and lower lows), it's very important that support holds at (2).

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