From Chris Kimble: The precious metals sector simply cannot buy a break. Since peaking, gold bugs have had several rally attempts squashed.
And many of them due to the strength that the US Dollar has found in the past decade.
Is it happening yet again?
For gold, silver, and the precious metals sector to rally, King Dollar needs to stall out here. Looking at the chart below, the US Dollar is testing resistance at point (1) and (3) within a tight uptrend channel (2).
If it breaks out, precious metals will continue to struggle. If it stalls, it may give life to another rally. Stay tuned!
US Dollar Index – Breakout Coming?
The Invesco DB US Dollar Bullish (UUP) was unchanged in premarket trading Tuesday. Year-to-date, UUP has gained 5.83%, versus a 8.29% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.