Turning Point for Gold

For 3 months, from early November through February 1st, gold moved relentlessly higher.

A move that DXY (the dollar index) mirrored in nearly lock step.

This is a classic correlation that makes sense. Dollar weakness makes gold cheaper in dollar terms putting a bid on gold.

But the thing about correlations is that they work when they work – and then they don’t. With the lesson being not to get hung up on what’s supposed to work.

When tried and true relationships break down – when things don’t work like they should – I always fall back on my market roadmap pattern.

See that yellow line circled in blue in this week’s chart? That’s my market Roadmap.

It’s now signaling a potential move to new highs for GLD (an ETF linked to the price of gold). And I’ve pointed out in The Chart of the Week levels I am watching for a potential move to new highs for 2023.