I believe that the dollar index will push between 82 - 83 and that will seriously put a hurt on commodities across the board. It has bounced off the resistance of 80.5 twice, but I think that this next time, it will hit mid 81 before retreating a little bit and then regain it's upward momentum.
Normally when the dollar index is up, gold is down and when the dollar index is down, gold is up.
Also, the Euro fell beneath a key 1.28 point today, which I believe caused a rush into the dollar and gold.
< If the Euro falls further, which I believe it will. The next key support is 1.26. If that is breached then commodities will be absolutely crushed. > TC
TC, agreed if the Euro losses key support @1.26 then commodities will be crushed. However, if Ben prints that will set the next scene up. I believe that may actually be the catalyst that forces printing again. At this point in time a strong USD is bad for US business including Petrol Dollars.
TC, I agree with everything you're saying. I think the only wild-card is Iran. If things get really bad there, we can throw common sense out the window as fear sets in.
I think the dollar could move even higher .85-.87 and we could see gold in the 1300's but I bought in last week hoping for a little pop but I won't wait too long. If gold can reach 1650 before a retreat I'd be happy. Would like to wake up to 1635. I can dream. Thanks for your comments. JB