Dollar Continues To Fall As Gold Rises

Gold and silver both closed right at their 10-day EMA’s, not enough to mark the top. It looked like their fates were sealed, but eager buyers came in to rescue them. Too many investors are awaiting this correction. Conditions like this often lead to unpredictable price shifts, that is why I chose not to trade the downswing.

The dollar is yet to signal a bottom; it may spike lower tomorrow or Friday before reversing. Economic data on Friday (GDP, Durable Goods, Core capital equipment and Consumer sentiment) may be the inflection point needed. It’s important not to overtrade in these conditions.

-US DOLLAR- The dollar looks like it may try to spike down (possibly tomorrow or Friday) to around 99.30 before truly reaching an interim bottom. These patterns usually reverse in a sharp fashion. If achieved, expect a sharp reversal to around 101.5 before rolling over.

-HUI- Miners bounced off the 10-day EMA, once again. Until they officially close below it, we can’t be certain of a top.

There wasn’t any buying on weakness in GLD or miners, so the upside is limited. Be patient and expect the unexpected. A good buying opportunity is just around the corner.