A question that many of us have been wrestling with (privately, anyway) is why, when gold is breaking out to new highs, the U.S. dollar is not plunging to new lows. I mean, sure, gold and the dollar usually move opposite to each other, but the dollar is holding support around 75 (for now).
I expect that support to crack, but a lot of people don’t agree with me. Jack Crooks is one of the best currency traders you’ll ever meet and he offers his own take on the dollar and gold. You can see it by pointing your web browser here: http://tinyurl.com/ydthlv4
Jack’s video is really worth watching.
My own expectation is for the U.S. dollar to continue to trend lower until sometime in the third quarter of next year. Then, if the dollar follows its historical cycles, we should see a pretty good rally, and it could always turn into something more. But there’s a lot of time between now and then, and a lot of money to be made.
Whatever your own view, be careful out there.
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- Dollar Up and Gold Down (07/23/08)
- News That Can Push Around The Dollar and Gold (11/14/09)
- Gold, the Euro and the US Dollar (04/22/08)
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