Gold and The Dollar
I must admit I'm a little disappointed with the way Gold and Silver have been acting. The dollar has been trending down from point A to B which means Gold should be trending up from point A to B, instead gold is moving sideways and having trouble breaking through resistance.
I'll sit tight with my long metal position in SLV and GLD, but I'd like to see some momentum come back into this market soon.
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![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_4.gif)
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-euro-small.gif)
6 comments:
I believe $ and gold are not strongly anti-correlated. Both have extremely complicated fundamentals. So it's normal.
Hi, I like Murphy's explanation about why gold and silver are not as strong as you'd think with such a weak dollar. He thinks it is due to the bit of strength in the Yen. I would add that I think after such a huge prior move it may just need more time to consolidate. Also, this is the weaker seasonal period for gold. July-August is when it often picks up. And then there is also the IMF about to sell all their gold.
Kevin, REITs must crash withing the next 2-3 days, there was a pinic at commercial mortgage CDS market today.
Watch your charts and short whenever you see they start falling.
Sandro, I am already short a few Reits my friend...I'm just wating for confirmation so I can get bigger in the position. I have a very small short position right now.
Headline charts...thanks for the comments about Gold.
The CMBX credit swaps for commercial real estate are a bit better today:
http://www.markit.com/information/affiliations/cmbx
At current level the damage is big, but not huge. For real panic I shall see this stuff to decline more.
http://www.markit.com/cache/curves/7f80b27dad2003a8ba98c95edbd.png
Kevin, does this chart look very bad?
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