by Jesse Colombo
GoldSeek
The U.S. Dollar Index is at a critical inflection point, and how it behaves from here will have a major impact on the direction of gold, silver, and commodities.
As a quick reminder, the U.S. dollar typically trades inversely with commodities—when the dollar rises, commodity prices often fall, and vice versa. This is where intermarket analysis comes into play—a method of examining related markets to gain insights and anticipate moves across asset classes.
As a reminder, I track the dollar via the U.S. Dollar Index—a measure of the dollar’s exchange rate against a basket of major world currencies (not its purchasing power).
I’ve been highlighting how the U.S. Dollar Index has been teetering on the critical 100 level—a key technical support that dates back to 2023.