Gold Blindsided By Soaring Dollar And Falling Crude Oil

May 19, 2015 - 4:26pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

Our stops were hit in both our long gold and silver:

Gold in @ 1224.80 out @ 1208 -$16.80

Silver in @ 1756 out @ 17.09 - .47

Gold Market Forecast

On a technical basis yesterday’s failure to really trade above the resistance area of 1221 was a foreboding note. It must be realized that both yesterday’s and today’s market price in the precious metals, along with the commodity complex, as a whole has been dynamically brutalized in terms of price by a strong U.S. dollar. Yesterday we witnessed gold closing a couple of dollars higher. The real story underlying this move was a strong dollar taking away over $10 in pricing. Today we saw a nominally weak precious metals markets with gold in fact trading only $3.20 lower on the day adding a -14.20 when we factor in strength in the U.S. dollar.

Whether we are witnessing the return of dollar strength, one thing for certain we cannot rule out is the fact that the dollar might have seen the last of this downside correction and what we have witnessed over the last few days is a pivotal reversal. 

Sentiment Indicator: