Will the growth of the dollar index decrease the value of gold?!
Updated
When we look at the gold price chart in the weekly time frame, we see that the price is in a range where the valid Fibonacci retracement percentage is in the range of 38.2% compared to the previous downward wave (wave 1)! On the other hand, if we pay more attention, we will see that this range is just below the diagonal line, which we know as a valid broken support line, which has now become a valid resistance line. On the other hand, when we look at the main big downward wave (wave 1), we see that this wave can experience a decline in the range of 61.8%, which is a more general and more likely return range. In this case , the price will right on the support line, which is valid and connects the troughs of the previous two waves. By putting these evidences together, it can be concluded that we will soon see the price of gold drop to the range of $1,450. Now, if we take a look at the dollar index chart, we will see that this index is also trying to perform a behavior (growth) that strengthens our current analysis about the gold ounce. I will present the analysis of the dollar index in the update of this analysis.
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