Currencies play an important role with precious metals.
Gold and Silver either have the tailwind of a weak US Dollar or the headwind of a strong Dollar.
Today’s chart looks at another key currency that often moves in different directions than the US Dollar, and thus has an effect on precious metals.
It’s a long-term “monthly” comparison chart of Gold Futures (top frame) and Euro Futures (bottom frame).
The Euro and Gold have made important lows at each (1) on the chart. And they tend to be when the Euro is testing its long-term uptrend line (2).
Well, that is happening again at (3).
Will the Euro head higher again, thus weakening the Dollar, and providing a tailwind for Gold Bulls? Stay tuned!