CNBC Contributor
Gold or silver, which is the most compelling? Both are used as an alternative to fiat currencies and in this area attention has shifted from the U.S. dollar to the Euro. It is the increasing strength in the U.S. dollar that is driving down the price of gold and silver. Assessment of the precious metals also swings on assessment of the U.S. Dollar index.
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Our main focus is on gold, but this cannot be easily separated from the influence of related markets. The Dollar Index [.DXY
77.25
0.22
(+0.29%)
] developed a symmetrical triangle. The breakout on the upside has an initial target near $0.785, just below the substantial resistance level near $0.795.
0.22
(+0.29%)
] developed a symmetrical triangle. The breakout on the upside has an initial target near $0.785, just below the substantial resistance level near $0.795.
This
reduces the probability of the U.S. dollar quickly moving above
resistance and resuming a march to the next resistance level near
$0.815. This suggests the strength of the dollar may be temporary and
this has an impact on the raw chart analysis of the gold price.
There are two features of the gold [GCCV1
1799.40
-9.70
(-0.54%)
]price trend. First is the role of the
long-term trend line. For much of 2010 this uptrend line acted as a
support level. The price retreated to this level and then rebounded. In
early 2011 the priced dropped below the line and the line acted as a
resistance level. Read More
-9.70
(-0.54%)
]price trend. First is the role of the
long-term trend line. For much of 2010 this uptrend line acted as a
support level. The price retreated to this level and then rebounded. In
early 2011 the priced dropped below the line and the line acted as a
resistance level. Read More 
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