Just in case you missed this the US Dollar did dip momentarily below the ‘79’ level on the US Dollar Index. The dollar then rebounded to trade at 79.44. This is something to keep an eye on along with the progress of the Euro which forms a large part of this basket of currencies.
If the dollar does break down below the ‘79’ level and stays there we could see a rapid decline to the ‘72’ level. This in turn would see gold prices head to higher ground due to its inverse relationship with the dollar.
It remains to be seen if the powers that be will allow it fall to quickly or even if they have power to hold it where it is.
The miners have started 2014 very well indeed on the back of rising gold prices, so the question is; is this the real deal or another head fake? Is the bottom really in? Could there be a final capitulation just ahead of us? Will the summer doldrums take the PMs lower?
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