Gold prices (XAU/USD) typically move inversely to the US dollar; when the dollar strengthens in a bull market, gold prices tend to decline, and vice versa, making gold a useful indicator for assessing dollar strength and potential market reversals.
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Dollar Uncertainty Is Gold Hinting at a Bullish Reversal?Ajouté :
So, today, if they put a gun to my head, I said buy the dollar. But, let's look at gold and why do we care about gold?
So, here's gold on the daily time frame again.
Uh it's XAU / USD. So, XAU / USD meaning that if the bottom part of this equation, USD, is going to be be getting bigger, and it's in a bull market, so it should be getting bigger, right? If it's going to get bigger, then it should like pull this currency pair lower. In fact, right there on the 27th of May, I thought this was it. I thought we're going to we're going to collapse now. Uh and gold will go to at least 4,000, maybe even lower. Yesterday and today, the action seems to have reversed, and actually gold seems to be again heading higher. So, this is why I am not 100% about the way dollar uh is going to behave in the next few weeks.
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