A stealth shift in talking points and monetary policy from the Federal Reserve brought a very dovish tone.
And this sent interest rates lower, along with the US Dollar(NYSEARCA:UUP).
And when the Dollar goes lower, Gold(NYSEARCA:GLD) enjoys the tailwind. Gold rallied over 10 percent from mid-May to early July!
In today’s chart, we highlight this shift by looking at the Gold / US Dollar Ratio. BUT, the rally may be a case of too far too fast.
The GOLD/DOLLAR ratio hit resistance two weeks ago and created a bearish reversal pattern at (1). This comes as momentum hits extreme levels (2).
Precious metals bulls do not want to see the ratio peak here. Stay tuned!