Gold and silver prices have been on the rise in early 2020 as investors turn to precious metals as geopolitical concerns and news of coronavirus hit the airwaves.
The rally in gold has been impressive, with prices surging past $1600 this week (note silver is nearing $18.50).
What’s been particularly impressive about the Gold rally is that it has unfolded despite strength in the US Dollar.
In today’s chart, we look at the ratio of Gold to the US Dollar Index. As you can see, this ratio has traded in a rising channel over the past 4 years.
The Gold/US Dollar ratio is currently attempting a breakout of this rising channel at (1).
This would come on further Gold strength and/or US Dollar weakness. Gold bulls are hoping for a breakout! Stay tuned!