Gold Market Commentary – Thu 27 Jul, 2017

By Cory

Gold and the US Dollar – Long Term Chart Breakout

The chart and brief description below come from our friend Chris Kimble over at Kimble Charting Solutions. Chris does a great job of presenting charts and technical analysis in a straight forward way. Here he looks at the monthly chart for the Gold/US Dollar ratio which is attempting to breakout of the 6 year downtrend. This is a great long-term sign that the metals market has bottomed and is starting its next long term bull market. This does not mean that gold will be screaming higher starting tomorrow but over the long term it should continue to trend up.

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Gold- breaking above 6-year falling resistance

Below looks at the ratio of Gold compared to the US Dollar over the past 20-years. The ratio reflects that some long-term trends have taken place and the ratio is making an attempt to do something it hasn’t been able to accomplish in 6-years.

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The ratio broke above 6-year falling channel back in 2001 at (1) and then it proceeded to rally for the next 10-years.

For the past 6-years, the ratio has continued to create a series of lower highs and lower lows inside of falling channel (2).

Currently the ratio is attempting to do something that it has not done in 6-years, which is a breakout above falling channel (2) at (3).

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Source:: The Korelin Economics Report

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