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U.S. Dollar Testing Important Support: Gold Bulls Watching

Published 2023-08-14, 03:08 p/m

The US Dollar has been in a choppy rising trend higher since bottoming in 2007/2008.

You can see that rising channel in today’s long-term chart.

USD Monthly

But king dollar has been under pressure in recent months. So if the U.S. dollar wants to keep climbing into year-end, it will likely need a jump-start soon. If not, it may continue to weaken and provide a tailwind to precious metals like gold and silver.

As you can see, the U.S. Dollar Index has been rejected by its overhead rising trend line a few times. The latest rejection has sent the dollar back to an important 61.8% Fibonacci level at (1). This level acted as resistance twice but is now acting as support.

This is a huge spot for king dollar. A bounce higher would keep the currency in the upper half of the rising channel, while a break lower would open the door for further downside while providing a tailwind for gold, silver, and the miners. Stay tuned.

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