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Is Gold/US Dollar Ratio Sending Bearish Signal To Precious Metals?

ByChris Kimble
Published 09/23/2020, 08:16 AM
Updated 07/09/2023, 06:31 AM

Last month, I featured this Gold/US Dollar ratio chart in an article warning of the potential for a trend reversal.

Gold / Dollar Ratio Monthly Chart

While the broader bullish trend is still intact (higher lows since 2015), it could be time for gold to take a breather.

Looking at today’s “updated” chart, we can see that the ratio formed a “doji star” candle last month with momentum running at peak levels (concerning). And this month we are seeing follow through to the downside (in the form of a red candle).

As well, this bearish reversal pattern comes at a key long-term price resistance level, marked by (1) and (2).

Keep an eye on this doji star topping pattern. This month’s decline is sending a concerning message to Gold bulls!

Latest comments

The broader bullish trend is still intact, but we have a potential trend reversal. So, if it will go up, then it will go up, otherwise it will go down. But it could be even range bounded for a while. This is really helping in deciding my next trade
As I understand it, academics have been unable to validate technical analysis as a method for consistently making money above index investing returns, except by collecting a wage or fee for providing it.  If anyone knows of studies that have found differently, please let me know.  Really, please refer me to reputable work.
:)
What's the point to write these articles to state the obvious? We are all able to look at graphs.
Haha good one
;-)
94.5  >> 95 DX resistance. Stop asking questions and provide some insight. Your writing style is very annoying.
Maybe he's asking around for an insight, it's not easy to understand where gold is headed and he needs a small help
 lol
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