Between 2001 and 2011, gold was much stronger than the US dollar. Since 2011, King Dollar has been much stronger than gold. An important “support test” is in play right now in the Gold/USD ratio.
Gold Vs. Dollar
The ratio itself remains inside of multi-year falling channel (1). A dual test of support is taking place at (3) above.
The future of this ratio and several portfolio construction plays will be greatly impacted by what takes place at (3).