A strong U.S. dollar last week caused precious metals to fall as seen in exchange-traded funds (ETFs) like the SPDR Gold Shares (NYSEArca: GLD) and the iShares Silver Trust (NYSEArca: SLV).

Another precious metal, palladium, fell 16 percent from the previous week’s highs. In turn, the Aberdeen Standard Phys PalladiumShrs ETF (NYSEArca: PALL) pulled back as well–a move, that to some analysts, was forthcoming given the precious metal’s serendipitous rise past gold in terms of price per ounce.

“In our opinion, a correction of the palladium price was long overdue,” Commerzbank analysts said in a note.

Despite the fall in gold prices, it could be viewed as a temporary setback. A key technical level to watch could mean a short-term pullback is portending to a bullish move ahead based on some analysts’ forecasts.

“We’re really going to need for it to break above the key level which is a range of $1,360 to $1,380. If we get above that $1,380 level, that was the top in 2014, 2016, 2017 and 2018,” said Miller Tabak equity strategist Matt Maley. “Whenever you get multiple touches over several different years, if you can finally break above that level, it really takes off. In other words, it confirms that the long-term trend has changed.”

Gold has long been used as a safe haven asset, particularly when the value of the dollar declines. Furthermore, it provides a hedge for inflation since its price typically rises in conjunction with consumer prices.

As such, it was no surprise when the dollar index resulted in downward pressure on precious metals.

In the video below, Edward Egilinsky, managing director and head of Alternative Investments at Direxion, says that while palladium has been seeing a recent run-up in prices, gold should see renewed favor from investors owing to a shift in monetary policy

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