The U.S. dollar is poised to rally back to near $97.50 as this recent downside price swing ends. We believe the U.S./China trade talks and North Korea deal will result in a strong upside potential for the U.S. dollar and the U.S. stock market as time progresses.
A certain number of industry analysts are starting to announce the recent December 24th lows and subsequent rally as a “new bull market.” We have been suggesting that this market has lots of room to run as a continued global capital shift takes place. We do expect some price rotation over the next 3~5+ weeks in certain sectors – including the U.S. stock market and gold futures. We believe the dollar strength will continue to push higher, above $97, with the potential to reach near $99 before the end of this year.
US Dollar Index Daily
Just take a look at the weekly gold chart price range and support zone. As we know, in most cases when the dollar rallies gold falls.
Gold Futures Weekly
This is important because it shows predicted price levels going all the way into 2021 and highlights why this “new bull market” may just be getting started.