The US Dollar is always on Gold bulls minds. A weak dollar tends to be a tailwind for Gold prices while a strong dollar tends to be a headwind.
Well, the US Dollar Index is nearing an important juncture and Gold bulls should be watching here.
As you can see in today’s chart, King Dollar has been inside a rising channel for 10 years. The Dollar peaked in early 2017 offering Gold bulls some breathing room as it pulled back.
Recently, the US Dollar and Gold have been rising together.
The US Dollar is testing its 2017 highs this month at (2)… Something’s gotta give! A breakout to new highs for the US Dollar would be bearish for Gold bulls, while a breakdown of the 10-year rising channel would be super bullish.