{"id":54166,"date":"2021-03-01T11:51:03","date_gmt":"2021-03-01T16:51:03","guid":{"rendered":"https:\/\/www.ino.com\/blog\/?p=54166"},"modified":"2021-03-01T11:51:03","modified_gmt":"2021-03-01T16:51:03","slug":"gold-silver-the-king-fights-back","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2021\/03\/gold-silver-the-king-fights-back\/","title":{"rendered":"Gold & Silver: The King Fights Back"},"content":{"rendered":"

The benchmark 10-year Treasury yield spiked to 1.61% last week for the first time in more than a year. The U.S. dollar, aka \u201cKing,\u201d fought back to the upside on this growth of the yield. Investors ran out of other assets, including precious metals, and its price dropped.<\/p>\n

Let us see the updated structure of the U.S. dollar index (DXY)<\/a><\/strong> in the chart below.<\/p>\n

\"dollar\"<\/a><\/p>\n

It looks like the DXY moves according to your favorite orange path<\/a> to the upside that was published last week<\/a>. However, the sharp drop below the earlier valley eliminated both scenarios. <\/p>\n

I am looking for a more complicated consolidation to emerge. The entire green zigzag to the upside started last month was labeled as only the first leg to the upside. Before that, I considered this structure to be completed. The red zigzag to the downside makes a joint with a new second leg up. The initial move of it is powerful as it almost reached the upside trigger of 91.06.<\/p>\n

I added the clone of the remaining part of leg 1 to the right to show you the possible path. The target area starts at 92.07, where leg 2 will travel an equal distance of leg 1. We cannot rule out the extension, so I added 1.272x and 1.618x multipliers to the chart. It is located at 92.72 and 93.55 respectively.<\/p>\n

This move-in leg 2 up will put more pressure on precious metals as we can see on the correlation sub-charts that the regular inverse correlation is back.<\/p>\n

\n\t
\n\t\t

<\/p>\n\t\t

<\/p>\n\t\t

Do you see a stronger dollar ahead?<\/strong><\/p>