Loading ...Why A Strong Dollar Isn’t A Death Sentence For The Gold Price
Summary
- Dollar strength is keeping gold stuck in its lateral trading range.
- Yet, gold’s currency component is no longer a seriously limiting factor.
- Gold’s multi-year high suggests the establishment of a new bull market.
After a failed breakout attempt, the price of gold has fallen back into the holding pattern which was established last month. While it may be frustrating for some investors that gold remains locked in a tight trading range, the lack of forward progress in recent weeks has actually done the market some favors. For one thing, it has cooled off the excess heat generated by its June rally. It has also allowed the bulls to consolidate their control over gold’s dominant intermediate-term (3-6 month) trend.
In today’s report, I’ll argue that the longer gold remains in this holding pattern, it increases its chances for another surge higher later this summer when the metal’s historically bullish seasonal tendencies kick in. I’ll further make the case that recent strength in the U.S. dollar is no longer a major concern for longer-term gold investors.
https://www.gold-eagle.com/article/why-strong-dollar-isnt-death-sentence-gold-price