A common question I receive while coaching retail traders: "Why did gold move up, while dxy was going up" or "why didn't gold drop, when dxy rose"
While Gold and the DXY have an inverse relationship, remember that it isn't perfectly inverse. This means that it gold does not have to drop immediately as the dxy rises. There could be a delay reaction, due to the trend or other fundamental factors.
Today, Gold climbed strongly from the 1823 price level to touch the 1850 price level twice before trading lower again.
With the price action showing a rejection of the move higher, look for a deeper correction on Gold (especially if the DXY continues to strengthen), with the next lower key support levels at 1820 and 1800
While Gold and the DXY have an inverse relationship, remember that it isn't perfectly inverse. This means that it gold does not have to drop immediately as the dxy rises. There could be a delay reaction, due to the trend or other fundamental factors.
Today, Gold climbed strongly from the 1823 price level to touch the 1850 price level twice before trading lower again.
With the price action showing a rejection of the move higher, look for a deeper correction on Gold (especially if the DXY continues to strengthen), with the next lower key support levels at 1820 and 1800
