The USD fell on Ukraine’s success news. How did gold react?

EUROPE (Sept 14)  Ukraine's military successes in the war with Russia had a negative impact on the dollar. At the same time, gold didn't benefit as much as it could.

Looking at an individual tree (daily session) is exciting. Especially if the tree (profits on a trade) is growing day by day. However, it is looking at what the forest (the broad perspective, general trends) does that makes one's portfolio grow over time.

Two Keys

While I provided a lot of context in Friday's flagship analysis, in today's analysis, I will focus on two key long-term developments that are extremely important but that don't get enough emphasis.

The first one is in gold stocks, and the second is in the USD Index.

Starting with the latter, the key thing is that the USD Index is after a breakout above the previous highs, and while it just invalidated the short-term breakout, it continues to trade in a mirror-like pattern to what happened in 2002 and 2003.

Back then, the corrective pause took quite a while before the movement continued. Due to sharply rising interest rates, it doesn't have to be the case this time . However, even if the USD Index once again moves to the 104-105 area, the medium-term outlook will still remain very bullish.

Is it likely to happen?

KITCO