Gold also sold off last week. Big time. Although fundamentalists still have a case for weaker gold there is a strong technical bear signal (see the volume!!) which I expect will be taken advantage of by technical traders at least for the short term.
Notice the mirror image on the dollar, which experienced a blast off on similarly impressive volumes. A potential technical trade would be to long dollar with an intial stop at 22.05.
Similarly one could always short gold of course.
USO, on the other hand is sticking fast, and showing that the stronger dollar is not causing a similar sellof in other commodities. Either it will have to catch up, or Gold will resume its longer term trend eventually. I still fancy the short term long dollar technical trade even though it’s still going against its long term trend.
StarBiz-0.01%
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Gold and $$$
Gold also sold off last week. Big time. Although fundamentalists still have a case for weaker gold there is a strong technical bear signal (see the volume!!) which I expect will be taken advantage of by technical traders at least for the short term.
Notice the mirror image on the dollar, which experienced a blast off on similarly impressive volumes. A potential technical trade would be to long dollar with an intial stop at 22.05.
Similarly one could always short gold of course.
USO, on the other hand is sticking fast, and showing that the stronger dollar is not causing a similar sellof in other commodities. Either it will have to catch up, or Gold will resume its longer term trend eventually. I still fancy the short term long dollar technical trade even though it’s still going against its long term trend.