Here is the key for gold and the US dollar.
November 19 (King World News) – Naveen Nair from Citi: The recent dollar rally has faded just as DXY found resistance at 107.35 (2023 high).
Daily Chart Shows Strong US Dollar Advance Running Into Possible Resistance
US Dollar Index
The DXY bounced off resistance at 107.35 (2023 high) last week. The question here is whether we are likely to see a continued rally in the dollar. However, we are cautious here with momentum slightly fading – weekly slow stochastics is on the verge of crossing lower in overbought territory. Resistance at 107.35 also remains strong.
Multi-Year Weekly Chart Shows Dollar Index Hitting Resistance
As a result, we are wary of a pull lower, and look for the cross lower in weekly slow stochastics for an early sign. However, we only see notable support at around 103.80-103.92 (55w MA, 200d MA).
IF we break above 107.35, it would be a bullish sign. Subsequent resistance is only at 108.97 (61.8% Fibonacci).
King World News note: If, as Naveen Nair suggests, the US dollar pulls back below the 104 level, that would be another positive catalyst for the gold market. This would also send silver and the mining shares higher from very oversold levels. Regardless, gold has been surging vs all fiat currencies.
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