It Will Be A Massive Week With The ECB On Deck

That will result in Gold prices likely dropping significantly from their current levels. For now, gold has been able to hold steady around $1,925, and it feels as if there is a giant buyer there. But once that buyer gets cleaned up, the run for gold could be over, aided by a stronger dollar. It could result in the gold falling back to $1790.

Meanwhile, oil looks like it could ready to move back to $34.

Finally, a stronger dollar hurts US equities because it makes multi-nationals less competitive and hurts the revenue and earnings; when converting back into US dollars for reporting purposes, it acts as a drag on earnings.

The worst thing that can happen is a sudden and aggressive move higher in the dollar index over the coming weeks. What happens this week with the ECB will matter a great deal.

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Disclosure: Mott Capital Management, LLC is a registered investment adviser. Information ...

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