It is clear the inverse correlation that exists between gold
and the US dollar
. These charts are very interesting. The daily DXY
timeframe shows the 50SMA crossing over the 200SMA. On the other hand, GLD
made a new all-time
record high weeks ago. What it makes it interesting is that price has been rejected by the downtrend line ( GLD
right now, and the VIX
is gaining momentum.
These may be good reasons to believe that Gold
might keep going higher and the US dollar
keep going down. We need confirmation.
If we keep trading simple, Charles Dow's final observation was that, by their very nature, trends tend to continue rather than reverse.