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Is the Gold to US Dollar Ratio Setting Up for a Major Breakout?

Published 07/12/2023, 06:05 pm
Updated 09/07/2023, 08:31 pm
XAU/USD
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Precious metals prices have been creeping higher with Gold trading over $2000/oz.Gold/US Dollar Ratio-Monthly Chart

A weaker US Dollar has provided a nice tailwind and Gold bugs celebrated a new monthly closing high last week. So, is it time for Gold to finally break out to new all-time highs?

Well, today’s “monthly” chart of the Gold to US Dollar ratio highlights one more major hurdle.

As you can see, the ratio remains inside of a long-term falling channel. And the overhead resistance (see red arrows) is very heavy.

The gold/U.S. Dollar ratio is once again (the 5th time!) testing this falling channel resistance at (1).

In my humble opinion, this ratio needs to see a breakout for Gold to really rock and roll to the upside.

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