Gold trading and Dollar Index who will lead?
Dollar index is at new highs. Normally when the dollar index is showing strength the gold market responds with weakness.
Price action on the Dollar index could stay in a consolidated range from 97-100 until we see some interest rate reductions from the FED.
Gold has not moved inversely to the Dollar index.
Watching the price action since June we see strength in both the Dollar index and the Gold futures.
This is actually showing that there is an underlying chaos to the markets as dollar strength is used as a flight to safety and Gold is being bought as a “Chaos Indicator” showing the world political environment has volatility that is driving the price up.