![\"10-Year](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-05-tnx.png?resize=525%2C404&ssl=1\")
<\/p>\nA weakening Dollar has further boosted gold, lifting it above resistance at $2,800 per ounce. Treasury yields are also falling as anticipated inflation declines. However, volatility remains high, and we need to stay focused on the long-term trend.<\/p>\n
Ten-year Treasury yields broke support at 4.5% with declining Trend index peaks indicating selling pressure. We expect a correction with a target of 4.2%.<\/p>\n
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The Dollar Index surprised, retreating below 108. Another test of support at 107 is likely, with declining Trend Index peaks indicating selling pressure.<\/p>\n
![\"Dollar](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-05-dxy.png?resize=525%2C404&ssl=1\")
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Gold soared to an intra-day high of $2,880 per ounce, with rising Trend Index troughs signaling strong buying pressure. The breakout offers a short-term target of $3,000. A retracement that respects new support at $2,800 would strengthen the signal.<\/p>\n
![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-05-gold.png?resize=525%2C404&ssl=1\")
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Silver broke resistance at $32 per ounce before retracing to test the new support level. Respect would confirm a target of $35.<\/p>\n
![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-05-silver.png?resize=525%2C404&ssl=1\")
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Donald Trump’s threat and quick reversal of tariffs on Canada and Mexico precipitated Dollar weakness in the past few sessions.<\/p>\n
A deliberate strategy to weaken the Dollar would likely yield better results for the US than tariffs. Tariffs risk retaliation from trading partners and undermine domestic industry’s long-term competitiveness in export markets.<\/p>\n
A public policy to weaken the Dollar would likely face bitter opposition from Wall Street, which has long profited from the Dollar as a global reserve currency. Behaving like a bull in a China shop, however, may achieve the same ends for Trump, while he can deny that it was ever his intention.<\/p>\n
However, we should not trade hunches and need to base our strategy on what we can clearly see. The dollar index’s long-term trend remains upward.<\/p>\n
![\"Dollar](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-05-dxy-w.png?resize=525%2C404&ssl=1\")
<\/p>\n
The Treasury market shows surprising strength, with the 10-year yield breaking support at 4.5%. Bond market reaction to Fed rate cuts last year drove long-term yields higher, but upward pressure has eased now that the Fed has paused. Fears of a rebound in inflation are fading, lowering the term premium.<\/p>\n
The long-term view, however, shows a continued uptrend.<\/p>\n
![\"10-Year](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-02-05-tnx-w.png?resize=525%2C404&ssl=1\")
<\/p>\n
Lower Treasury yields and a weak Dollar are both bullish for gold, which has broken resistance at $2,800 per ounce and is likely to test $3,000 in the next few weeks.<\/p>\n
Silver lags gold because of far larger industrial demand, which is not expected to expand at the same rate.<\/p>\n","protected":false},"excerpt":{"rendered":"
A weakening Dollar has further boosted gold, lifting it above resistance at $2,800 per ounce. Treasury yields are also falling as anticipated inflation declines. However, volatility remains high, and we need to stay focused on the long-term trend. Treasury Markets Ten-year Treasury yields broke support at 4.5% with declining Trend index peaks indicating selling pressure. … <\/p>\n