The precious metals sector simply cannot buy a break. Since peaking, gold bugs have had several rally attempts squashed. And many of them due to the strength that the US Dollar has found in the past decade.
Is it happening yet again?
For gold, silver, and the precious metals sector to rally, King Dollar needs to stall out here. Looking at the chart below, the US Dollar is testing resistance at point (1) and (3) within a tight uptrend channel (2).
If it breaks out, precious metals will continue to struggle. If it stalls, it may give life to another rally. Stay tuned!
US Dollar Index – Breakout Coming?