DXY’s Last Stand - Gold Price Prediction

The DXY reminds me of a boxer who gets knocked down again and again but keeps getting back up until the knockout blow is delivered and down goes DXY for the count.

The DXY has been hammered since April:

But it looks like it is enjoying a resurgence in the short term:

I believe this is just a relief bounce. I expect the DXY to trade in a range of 100 to 102.50 before capitulating below 100 and heading down to my long-held target of 94-92.

Impact of DXY on Gold Prices: What Investors Should Expect

What does this mean for the metals and miners?

Looking at the correlation to Gold, the DXY is back to a near-perfect inverse correlation, with a correlation coefficient of -0.90. If the DXY goes up, Gold goes down, and vice versa.

Gold Price Prediction: Will a DXY Breakdown Trigger a Breakout?

Given the anticipated seesaw in DXY between 100 to 102.50 in the short term, I expect the metals to act similarly, stuck in ranges, until DXY breaks 100 and heads down to 94-92. Then the metals break out to the upside.

Gold trades between ~$2500 to $2570 for now, but I expect it to break to the upside when the DXY breaks down.

Silver Price Forecast: Range-Bound Until the DXY Breaks?

The same goes for Silver. Stuck in a range from $28.80 to $30.70, just waiting to break resistance.

GDX

Similarly with the miners index, I anticipate a break of resistance at $40, but GDX may want to close the gap to $37.50 first.

 
Secure Your Wealth: Invest in Gold and Silver Today

The DXY is about to resume its decline and fall hard, which can only be good for the metals and miners. In the meantime, we need to remain patient for that to play out over the next few weeks at most. As the DXY faces potential declines, now is the perfect time to safeguard your wealth with tangible assets like gold and silver. Take advantage of the upcoming market movements and position yourself for potential gains. Don’t wait for the DXY to drop further—start investing in gold and silver now to protect and grow your wealth.