The USD Dollar Index is currently trading around 103.40-103.50 zone after making a reversal post FOMC Meeting Minutes and the 517K NFP release.
The reversal of the US Dollar Index is the result of the expected peak US interest rate has gone from 4.875% to 5.125% which has caused investors to by US Dollar. Gold has been sold off heavily from 1959 to 1859 after US Dollar Index made a reversal on Feb 3, and Feb 4.
Identifying a correction gold trend is a key to successful gold trading, The US Dollar Index is the key indicator for gold direction. The Fed officials are calling for further interest rate hikes and will keep the peak rate at 5.125% for a long time to fight inflation.
UD Dollar has made a reversal and it will go up to test the 111.00 – 113.00 which is negative for gold (XAUUSD) up trend.
Use this tool to view gold buy or sell trend vs USD Index