What Are the Dollar and Gold Saying About the Trade War?

The dollar is making new 1 year highs which is pressuring gold.

In July 2017, the dollar knifed below the November 2016 outside up weekly signal bar at 95.88.

That level is being challenged one year later.

Ostensibly, this move in the dollar is pressuring gold.

Cycles suggest and positioning and sentiment suggest both may be capitulating... the dollar to the topside and gold to the downside.

Yesterday, Larry Kudlow commented that the administration things that Chinese President Xi has no intentions of "following through on so-called talks."

China devaluing the yuan effectively checkmates to some degree Trump's tariffs.

The next bullet to be fired may be a devaluation in the dollar.

It is worth considering that the Chinese deval in the summer of 2015 led to the largest one day point drop in history.

Likewise, the currency battle between the U.S. and Germany in the summer of 1987 was a factor in that fall's crash.