USD's Impact On Gold And Silver
Chris Kimble | Jul 26, 2017 10:29AM ET
From 2011 to the start of this year, the USD has been pretty strong, rallying nearly 30% in 6 years. Yet over the past 30 weeks, King Dollar has been rather weak, declining more than 9%.
Below looks at the USD over the past 18 years, with 30-week performance applied.
As one can see, such a sharp decline in 30 weeks hasn’t happened that often since the late 1990s. The decline has the USD testing the bottom of a 24-month trading range and two rising support lines at the same time at (2).
This decline has bullish sentiment toward the USD at the lowest levels in the past three years, according to Sentimentrader.com, which is reflected in the chart below.
With few investors bullish USD and a triple support test in play after a rare 9% decline in 30 weeks, what the dollar does at (2) in the top chart could become very important for USD and many commodities.
Gold and silver have not pushed much higher while the USD has been very weak. Which makes USD's price point all the more important to the metals sector — if this triple support test holds.
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