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We've just capped off a big week for both gold and the dollar, and that's great news for my gold price prediction…
The most significant action came early on Memorial Day. That's when the U.S. Dollar Index (DXY) began another rally, this time to 94.50. But what happened next made me ecstatic.
Gold climbed along with the dollar, rather than falling against it.
That's something I've been saying could happen. I'll admit a few hours of that kind of action is no trend, but it's certainly worth noting.
The price of gold rising in the face of a climbing dollar is a positive sign.
And I'll show you what it means for my latest gold price prediction right after I recap last week's gold price movement…
What Was Behind the Gold Price Rally Last Week
Gold prices rose throughout the week of May 21, from a low of $1,288 to a Friday (May 25) peak of $1,307.
That was a gain of $19, or 1.5%. Meanwhile, the DXY climbed from 93.7 to 94.25, for a 0.6% gain.
In the interim part of the week, gold was jostled back and forth.
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On Wednesday (May 23), U.S. Federal Reserve officials said the economic outlook would justify another rate hike "soon," and that they'd be glad to see inflation overshoot 2%. That suggested tightening more aggressively would be unlikely.
The DXY dropped back below 94, allowing gold to run up to $1,294.
Then on Thursday (May 26), the dollar dialed back as U.S. President Donald Trump nixed the planned summit with North Korea. The DXY traded back to 93.7, and gold popped suddenly to $1,305.
Take a look at how the dollar moved between Thursday and Friday…
By Friday, some profit-taking pulled gold back to close at $1,301 to regain and hold the $1,300 level.
But like I outlined at the open, gold rose with the dollar on Memorial Day, even after selling off on Sunday evening to dip back below $1,300, closing the U.S. holiday at $1,297.
That's a bullish sign for gold's future, and I'll show you exactly how high I think it can go…
What Last Week Means for My 2018 Gold Price Prediction
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.