2017 Is the Year Gold Drops Below $1,000

In December 2013, I wrote “2014: The year of the dollar” and what a year it was. The U.S. Dollar Index DXY, -0.26% began to “run” in mid-year, rising from under 80 to 100 in nine months, by March 2015, when its largest component (the euro, at 57% of the index) traded a hair under $1. After the necessary consolidation phase, the DXY “broke out” above 100 after the U.S. presidential election, and we now look to have started another leg in this multi-year dollar rally (see chart).