Here is an important update on gold and the US dollar.
ALERT: US Dollar & Gold
May 14 (King World News) – From top Citi analyst Tom Fitzpatrick: The US Dollar Index failed to sustain above the 55 week moving average and posted an inverted hammer at the highs last week (see red area highlighted on the chart below).
The bounce seen over the past several weeks is somewhat similar to the corrective phase seen at the early stages of the last US Dollar Index bear market as highlighted in blue, again suggesting a turn back down is likely here.
US Dollar Index Headed Lower!
Gold Short-Term Target Of $1,365
This bearish US dollar chart goes hand in hand with Fitzpatrick’s bullish gold chart, which projects a move in the gold price back to the $1,365 level (see chart above).
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$1,365-$1,400 Resistance On Gold
King World News note: If the dollar bounce is indeed over and begins to reverse significantly lower, that would be the setup for a break below the key 87-88 level on the US Dollar Index. A break of that key level would send the dollar plunging to 84, setting up the gold market for a major breakout above the $1,365-$1,400 area.
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