Major markets around the world, including gold, are keying off of the US dollar.
US Dollar
April 29 (King World News) – Naveen Nair at Cit: A look at the weekly chart will show a pause in dollar weakness, with markets having posted a hammer candlestick off the 98.98 level (61.8% Fibonacci).
KING WORLD NEWS NOTE: US Dollar Pauses Decline After Weekly Charts Posts Hammer Candlestick
Short term, we could see the dollar index float between the recent lows of 97.92 and resistance at 100.16 (2024 September low). That said we are still slightly biased for a further dollar selloff, and IF we see a weekly break below that 98.98 level, it would open up a sizable move lower towards the 95-95.24 area (Psychological level, and 76.4% Fibonacci).
KING WORLD NEWS NOTE: If US Dollar Index Breaks Below 97.92 It Opens Up A Sizable Move Toward 95
On the consideration for upside, however, we remain cautious of the weekly slow stochastics indicator, which is in deeply oversold territory and still threatening a potential cross higher. IF we see that, it would be bullish for the dollar in the short term, though it would not change the longer term downside trajectory.
King World News note: The price of gold remains very expensive vs other assets such as crude oil and silver. For that reason, continue to accumulate physical silver on any weakness as the Gold/Silver ratio remains close to the 100/1 level, which is not sustainable on a long-term basis. This ratio will ultimately drop below 30/1 on its way to 15/1.
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