Gold Doesn’t Like a Rising USD
With the European liquidity/solvency crisis in full swing and major disappointment from the markets on the Fed’s announcement, it looks increasingly likely that the USD will continue to catch a bid.
A likely casualty of a higher dollar is gold:
Note that prior periods of USD strength have taken the wind out of gold’s uptrend. With the 150 day moving average and the long term uptrend sharing the $1,600 that area looks like the most probable target for this consolidation.