When the US Dollar broke out to new highs last year, it looked like nothing could stop the greenback. And the headwind of a strengthening Dollar made it difficult for precious metals like Gold and Silver to advance.
BUT… King Dollar has fallen nearly 15% from its highs, and 3 of the past 4 months have closed near the critical support zone of 100-102. This suggests that there has been little conviction of late. And this has provided a tailwind for precious metals.
The long-term “monthly” U.S. Dollar chart (below) highlights the breakout above the “red arrows” zone (100-102), along with the recent testing of that zone.
Note that the 2% zone of 100-102 has been support or resistance numerous times over the past 8-years, making this a critically important area to watch on a monthly closing basis.
Precious metals bulls should experience a fun price ride should support fail to hold here.
Definitely, something to watch. Stay tuned!
This article was first published at See It Markets.com. To see the original post CLICK HERE.
