Gold bulls spend much of early 2019 waiting for a catalyst to fuel another rally leg. They wouldn’t have to wait long…
A stealth shift in talking points and monetary policy from the Federal Reserve brought a very dovish tone.
And this sent interest rates lower, along with the US Dollar.
And when the Dollar goes lower, Gold enjoys the tailwind. Gold rallied over 10 percent from mid-May to early July!
In today’s chart, we highlight this shift by looking at the Gold / US Dollar Ratio. BUT, the rally may be a case of too far too fast.
The GOLD/DOLLAR ratio hit resistance two weeks ago and created a bearish reversal pattern at (1). This comes as momentum hits extreme levels (2).
Precious metals bulls do not want to see the ratio peak here. Stay tuned!
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