There’s been a ton of talk regarding the dollar and what our government will do about trying to strengthen it. I think instead of analyzing that and all the variables that can make the dollar go up and down, I’d rather study gold using the technicals. I’ve had much better success trading gold over the years using technicals than the fundamentals. I’m seeing a lot of my buy signals coming in the area of gold & silver. This time, it’s not just the commodity, but the gold stocks. That’s encouraging if you’re long gold, which I am. I think gold has a great shot at reaching the $925 level for this little go around.
I’ve mentioned several times when stocks go up a lot, they tend to give back half of that gain before resuming up again. Gold was around $650 last summer before it made its monstrous move to $1012. It fell to around $840 back in late April, early May. We’re now seeing the beginning of a new run I believe.
