Dec 13, 2016
- Gold stocks and silver continue to exhibit substantial strength in the face of the decline in the price of gold. Is that strength hinting that a substantial rally will follow a Fed rate hike?
- For some further insight into the matter, please click here now. Double-click to enlarge this key dollar versus yen daily bars chart.
- The dollar has arrived at the major resistance zone of 116 – 125. The yen is the fiat world’s top risk-off currency, and gold is the ultimate risk-off asset.
- So, it’s very important for gold bugs to watch the price action of the dollar versus the yen. For a closer look at the action, please click here now. Double-click to enlarge this 10 minute bars chart.
- At about 3:30AM on Monday morning, the dollar reached 116, and sold off from a small head and shoulders top formation.
- To view the price action for gold in that same 3:30AM timeframe, please click here now. As the dollar recoiled against the yen, gold began to surge against the dollar.
- Whether 116 marks some kind of final high for the dollar is unknown, but there’s no question that just as gold was vulnerable in the $1320 area going into the US election, the US dollar is now equally vulnerable, going into the Fed meeting tomorrow.