Stronger U.S. Dollar Means Weaker Gold
Commodities / Gold and Silver 2010 Jan 29, 2010 - 12:33 PM GMTBy: Mike_Paulenoff
The Dollar Index (DXY) continues strengthen (79.41 last), which is making life difficult for gold and the SPDR Gold Shares (NYSE: GLD). With the DXY making new recovery highs, its inverse relationship with gold remain remains very much intact, as the GLD presses marginally below its Dec 22 at 105.31. My near and intermediate-term technical work in the DXY argues for higher prices to 80.00 next and thereafter to 82.00, which if accurate implies lower gold prices that projects the GLD to the 100.00-99.00 next target zone.
Sign up for a free 15-day trial to Mike's ETF Trading Diary today.
By Mike Paulenoff
Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of
Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction
© 2002-2010 MPTrader.com, an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.
Mike Paulenoff Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
