Gold - Breaking Above 6-Year Falling Resistance
Below looks at the ratio of Gold compared to the US Dollar over the past 20-years. The ratio reflects that some long-term trends have taken place and the ratio is making an attempt to do something it hasn’t been able to accomplish in 6-years.
(Click on image to enlarge)
The ratio broke above 6-year falling channel back in 2001 at (1) and then it proceeded to rally for the next 10-years.
For the past 6-years, the ratio has continued to create a series of lower highs and lower lows inside of falling channel (2).
Currently the ratio is attempting to do something that it has not done in 6-years, which is a breakout above falling channel (2) at (3).
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Sadly, this is not about gold as much as the US dollar that is collapsing to most everything, especially #cryptocurrencies. #MonetaryPolicy in the US has been atrocious and there is growing disinterest in the dollar due to it's geopolitical, potential trade wars, and fiscal policies now too. The run up in stocks is actually partially due to a growing unease about inflation.
I don't see inflation yet, however, if the dollar keeps falling it will happen even if there is zero growth in the US, making stagflation a possibility.