by Jesse Colombo, Gold Seek:
The U.S. Dollar Index is testing a key technical level that has triggered major rebounds in the past, making this an important setup for commodities and precious metals investors to watch closely.
The U.S. dollar has fallen sharply since the start of the year, which has boosted commodity prices, especially metals like gold and silver, due to their inverse relationship.
This decline stems from several factors, including a plunging stock market that triggered foreign capital outflows, rising recession risks and expectations of future interest rate cuts, and growing uncertainty over America’s new tariff policies.