Gold has been hurt recently by dollar strength, but bullishness in the USD is at an extreme that could lead to its setback and thus help gold lift off support. Currently, the 10-day correlation between gold and the DXY is -0.88, which means they are moving almost diametrically in opposite directions.
I don’t like to get caught up on correlations, especially using short-term inputs, but it’s clear here that the dollar is hurting gold. Even without looking at metrics it isn’t hard to surmise that USD bullishness is high.
