One factor that has helped to keep Gold elevated is a weaker U.S. Dollar. The chart below highlights the Gold/U.S. Dollar ratio. Metals bulls want/need to see this ratio heading higher to send a bullish message to the broader metals sector.
As you can see below, this ratio has consolidated near its 2018 highs and is attempting to break out. It’s been a long tiring battle with plenty of set-backs for metals bulls over the last 5 years… but they aren’t giving up easily. A breakout here could produce another gold rush.
The ratio at mid-week is moving higher and is attempting to break above old highs at (2) and back into its falling price channel (1). A breakout here would send a bullish message to metals investors, one not seen in a few years. Gold is knocking, will the bulls answer?
The SPDR Gold Trust ETF (GLD) rose $0.45 (+0.36%) in premarket trading Friday. Year-to-date, GLD has gained 2.40%, versus a -0.35% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.