The fourth quarter was a tough one for USD bulls. The currency initially held a higher-low support bounce into October trade, but bulls were unable to re-test the highs, and that led to a very strong bearish reaction in November.
The bullish USD trend turned a year-old last month. And it can be difficult to put into scope everything that’s happened since then but, just last May, DXY was grinding at the same 90 level that ha.
As anticipated in the Q2’22 gold forecast, the main catalyst that drove gold prices higher in Q1’22 – the Russian invasion of Ukraine – proved to be a short-lived catalyst.