US dollar at resistance: gold, silver, stocks, up

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Kitco News' contributed commentary features articles and opinions from some of the top experts in the gold industry.

Tuesday, I wrote, “My base case is that metals get flushed down between now and the end of the week as the ratio and DXY hit their resistance and sputter out. If gold were to hold $1885 as the ratio and dollar top, I would consider that a signal for a long trade in metals”. Yesterday, both gold and especially silver were once again aggressively lower in the pre-market, but bulls stepped in.

I’m not sure whether metals are ready to take off in a straight line, but the weight of evidence suggests the probability that at least a short-term low is in.Gold looks like the pennant it’s been forming is preparing for an upside breakout. The prudent course may be to wait for gold to prove the sector is on the move with said breakout before overweighting.Follow J_GidaroDasilva jdasilva@kitco.com www.kitco.

 

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