Gold Holding Its Own Against Dollar

From Aug 7 to Aug 28, the U.S. Dollar Index (DXY) pressed against key 2-plus year support at 80.80, but managed to hold the trendline, and in the last three sessions, has pivoted to the upside to today's high at 82.26.

Today's strength also has propelled the DXY above its 50- and 200-day EMA once again.

The recent upturn in the DXY preserves the substantial, 28-month Cup-and-Handle bottom pattern, and could represent the start of a new upleg in the USD.

Certainly, heightened tensions between the US and Syria, as well as any unintended consequences of a military confrontation, has the potential to attract global money flows into the safety of the Dollar.

For the time being, it is interesting that spot Gold is holding its own, despite the strength in the DXY, which also could be a case of some money also flowing into the perceived safety of SPDR Gold Shares (GLD).

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