The U.S. dollar’s rally is having an unusual effect on the commodities market. Gold prices have fallen as expected, while crude oil has rallied to its highest level in years.
Oppenheimer’s Ari Wald says this setup is bullish for the broader market.
“When the value of the dollar rises, it typically costs less to buy commodities that are priced in the dollar. So it’s no surprise that we’ve seen [the] U.S. dollar reverse its year-long downtrend — it has strengthened — and against that backdrop the price of gold has broken down,” Oppenheimer’s head of technical analysis said Monday on CNBC’s “Trading Nation.”