I am sure the chart relationship will reassert itself. People are scrambling for commodities, including gold. |
I think euro/dollar can get up to as high as $1.2500 near term. That is where I would expect to see the dollar get some traction. |
If the dollar goes down, perhaps there are external reasons for weakness in the dollar, and gold is just going up on its own. |
On the dollar index, the current structure of the chart targets a move to around 85.50. If and when it does get there, I think that is your inflection point. If you are a dollar bull that's where you want to see demand coming in and if it doesn't, that speaks to a much deeper decline and maybe a trend change. |
The long-awaited downside correction in the U.S. dollar is now underway, and appears likely to continue for the near-term due to extreme institutional and retail investor sentiment readings and unmet minimum measuring objectives based on the greenback's breakdown earlier this week. |
The market in general is not expecting a rally. History tells us it is at times like these that a near-term rally is the most likely to begin. |
The market's expectations for a more hawkish Fed have steadily increased during the past 30 days. |
The markets have changed their perception about how they view gold. In 'normal' times people see gold as just another currency, a surrogate for the dollar. |
We're going to see a new, emerging period of higher long-term interest rates that are going to start now, and I believe they're going to carry on for some time. |