Here’s what we have learned: there is an inverse relationship between gold and the dollar. Strong USD = weak gold. Weak USD = strong gold. Well, its 2021 and it looks like we have to relearn. This past week we’ve seen the USD Index rally to break resistance (94.58 from October) and reach 95.25. And gold has rallied for 7 straight days and closed the week trading at $1865 breaking the previous resistance level of $1834 from September. Again, the numbers do not lie and technical analysis has no interest in what we have learned. Bear in mind that precious metals, particularly gold is seen as a hedge against inflation, and to quote Christine Lagarde, “markets this week seemed to have focused on three things, inflation, inflation and inflation.”
