Investing
Haven
No Result
View All Result
Forecasting Global Markets
  • Login
  • 2023 Forecasts
  • Stocks
  • Commodities
  • Silver
  • Lithium
  • Crypto
  • Top AI Stocks →
  • Top Silver Stocks →
  • TOP ENERGY STOCKS →
  • Top Lithium Stocks →
  • CRYPTO SELECTION →
Investing
Haven
  • 2023 Forecasts
  • Stocks
  • Commodities
  • Silver
  • Lithium
  • Crypto
No Result
View All Result
InvestingHaven
No Result
View All Result

Dollar Continues Bull Market: Bullish for Yields but Bearish for Gold

by Taki Tsaklanos
March 03, 2017
in Reading markets
0
Tags: GLDGOLDUSD
dollar chart
Share on FacebookShare on Twitter

The U.S. dollar is back in a bull market. After a long consolidation in the last 24 months, the dollar broke out in November only to come back and test its breakout level in February of this year.

InvestingHaven’s research team wrote in December: 5 Reasons Why The US Dollar Long Term Chart Is Bullish. That was another spot-on call, as it appears now that the dollar is going higher.

What does that mean to other asset classes? According to the current primary trend, it implies that a rising dollar would be good for yields but bearish for gold. Below charts make that point.

dollar bull market

First, yields are rising with the dollar since last year. Now that is a very important insight, and should be carefully examined by investors. The point we try to make is that market correlations tend to work in the context of a cycle. In other words, a rising dollar could be the dominant trend and, during that trend, positively correlate with yields and negatively correlate with gold. That does not imply, however, that those correlations will last forever. On the contrary, they tend to last for a period of time, typically during a risk on / risk off cycle, as explained in Market Outlook 2017 According To Our Proprietary Indicators.

For the coming months, we see yields rising with a rising dollar. Watch how both markets successfully tested multi-year support, and are now set to higher. A break below their support line would invalidate our view.

yields bull market

The above two charts are bad news for gold bulls. We already explained why Gold Investors Watch Yields As A Gold Price Indication For March 2017.  Moreover, we described how Gold Gets Pushback From Other Markets. We also said that our gold price forecast for 2017 is bearish. It now seems that markets are nicely lined up to support our forecast.

Note that gold has lost steam right above a major trendline, exactly in the same month the dollar and yields successfully tested their important support lines. That is no coincidence, and only confirms the trends we outlined in this article.

If gold goes lower, we believe in late 2017 investors will be presented with a great buy opportunity in gold. That moment is simply not now, so gold investors should have a bit of patience before accumulating their favorite asset.

gold bear market

Receive our weekly newsletter.

*We hate spam as you do.

premium service trade alerts   premium service trade alerts   premium service crypto teaser  
WARNING: InvestingHaven.com, our site, is not affiliated and has no connection whatsoever with Invest Haven Group on Invest-Haven.com or Investing-Haven.com. InvestingHaven.com did not have and will never have sales reps. Do not accept financial offers, certainly not by telephone, this is why >>
Taki Tsaklanos

Taki Tsaklanos

Taki has +15 years of experience in global markets. His methodology is unique and effective, yet easy to understand; it is based on chart analysis combined with intermarket / fundamental / sentiment analysis. His work appeared on major financial outlets like FinancialSense, MarketWatch, ... Email: taki.tsaklanos@gmail.com. Twitter: twitter.com/investinghaven

Latest

stocks forecast

How To Know When The S&P 500 Confirms A Bullish Turning Point?

September 28, 2023
cryptocurrency forecast prediction

The Most Bullish Cryptocurrency Chart Setup Of October 2023

September 28, 2023
leading indicators

Will The S&P 500 Find Support At Its 200 Day Moving Average?

September 24, 2023
uranium stocks

Is The Breakout In The Uranium Market Confirmed?

September 24, 2023

Connect with InvestingHaven

Receive top notch forecasts for free.

*We hate spam as you do.

Categories

  • 2023 Forecasts
  • Stocks
  • Commodities
  • Silver
  • Lithium
  • Crypto

Site Navigation

  • RSS Feed
  • About us
  • Mission 2026
  • Sitemap
  • Privacy & Disclaimer
  • Terms of Service
  • InvestingHaven vs. Invest-Haven
  • Contact Us
Investing
Haven

Top notch forecasting with gold price forecast, many stock predictions, cryptocurrency charts. Many investing tips and crypto market analysis.

Copyright © 2023 InvestingHaven

No Result
View All Result
  • 2023 Forecasts
  • Stock market
  • AI Stocks
  • Alternative Energy
  • Lithium Articles
  • Lithium Stocks
  • Silver Articles
  • Silver Stocks
  • Crypto Articles
  • Premium Crypto Research
  • Premium Services & MyAccount

Copyright © 2023 InvestingHaven

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

    InvestingHaven.com honours your privacy. Read our Privacy Policy