The above chart shows the US Dollar in recovery mode after “The Janet’ failed to raise rates and the dollar got hit, boosting gold prices in dollar terms.
We didn’t expect this rally in gold to last long and it now appears to be sputtering.
Gold hit a near term high of $1141.00/oz but is now trading at $1132.00/oz.
The US Dollar dropped to ‘94’ on the USD Index (DXY) last Friday but has progress since then and is now trading at 95.90 putting a reasonable bounce.
We would now expect the dollar to continue to strengthen in the near term and gold to soften as their inverse relationship remains intact.
So, is it time to be long or time be short on the precious metals sector?
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