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GOLD APPEARS TO BE STAGING NEW MOMENTUM BASE IN PREPARATION FOR A BIG UPSIDE MOVE (PART II)

In the first portion of this research article, I highlighted the correlation between Gold and the US Dollar as well as the correlation between the US Dollar and the EURUSD and JPYUSD. The purpose of this example was to highlight the different phases of US Dollar appreciation vs depreciation compared to the EURUSD/JPYUSD. The EURUSD and JPYUSD are often compared to the US Dollar as major global currencies. Therefore, when the US Dollar moves into a depreciation phase, we expect to see the EURUSD and JPYUSD move into an appreciation phase.

How this correlated to the price of Gold and the phases of advancing vs declining precious metals is simple to understand. Gold will stall, or more broadly downward, while the US Dollar is within an advancing/appreciation phase. Gold will move higher or begin an upward trend bias when the US Dollar begins to generally weaken or moves into a declining/depreciation phase.

Full Article: https://www.thetechnicaltraders.com/gold-appears-to-be-staging-new-momentum-base-in-preparation-for-a-big-upside-move-part-ii/