Gold Declines and USD Rises, But Are These Moves Really Significant?

Precious metals moved lower this week, which was accompanied by a decline in the general stock market and a small rally in the USD Index. The situation in the main stock indices is still rather unclear, so this week I would like to point your attention to the U.S. Dollar as it provides clues invaluable to anyone involved in the precious metals sector. After all, there is a clearly visible negative correlation between USD Index and gold, silver and PM stocks.

Let's begin with the chart (charts courtesy of http://stockcharts.com) featuring the USD Index in the medium term, and after that I will move to the short-term analysis. (more)