Friday, June 29, 2007

Gold And The Dollar



One of the reasons why I was bullish on gold, silver and oil is because I believed the dollar put in a top. In fact, on my other blog on June 18th I even posted about how the dollar should move lower. Since then the dollar has sold off but gold hasn't rallied. Gold actually is moving sideways to lower while the dollar has been moving down.

In my view this means that the metals are not ready to be bought and that is why I exited my long gold and silver position the other day at a loss. A falling dollar should provide support for these metals but that's simply not the case right now. That to me is a red flag for the bulls so be careful if you are bullish.

2 comments:

Banker said...

I think you are correct that the dollar is probably in the beginning stages of a major downtrend.

Deborah said...

I'm Canadian and I've been completely shocked by the plummet against Canadian currency. It seems to have flattened, but it was just marching straight down, from what, about 1.17 to about 1.07. I was thinking the sky was falling or something.

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