As we continue to kickoff 2025, here is a look at the US dollar and gold.
US Dollar: Room To Move Higher
January 15 (King World News) – Naveen Nair at Citi: In spite of the move higher in the dollar post NFP, techs suggest there is still room for a move higher in the dollar. The retracement on Tuesday could be an chance to buy the dip.
We have already broken past 108.92 (61.8% Fibonacci) level in last week a weekly basis. This leaves little resistance till the 111.19 handle (76.4% Fibonacci) (Gray line on chart below).
On a longer timeframe, we are still firmly within an upward trending channel as seen in the monthly chart.
Longer Term It’s Possible For US Dollar Index To Advance To 115–121
While weekly slow stochastics (momentum) is in overbought territory, we are not seeing any momentum divergence, nor are we close to a cross lower which would potentially suggest near term downside. We are also not convinced by the 110 psychological resistance, considering the speed in which we broke past in 2022.
As a result, there are no technical indicators (yet) of a reversal despite this dip, and we think we could continue to see a USD rally, with DXY moving towards 111.19. Support is likely at 108.07 (November 22 high), followed by 106.78 (55d MA).
King World News note: Nair’s monthly chart shows a possible road for the US Dollar Index to surge to the 115-121 zone. While this may or may not occur, the possibility for that advance is open on the longer term charts. Regardless of where the US dollar trades, gold has been rising against all of the garbage fiat currencies, including the dollar, because they are backed by nothing. Having noted that, 2025 will be the year the price of silver is unleashed on the upside.
Prins Warns Gold Price May Double To $5,400
To listen to Nomi Prins discuss why the price of gold may double to $5,400+, what to expect from for the silver market, mining stocks, uranium market, currency markets, CLICK HERE OR ON THE IMAGE BELOW.
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