This is an excerpt from an article at Minyanville.com The gist of the article is that precious metals are beginning to show signs of sympathizing with the USD and reacting inversely with the EURO. Very interesting read. For the full article just click the link at the bottom.
…in any case, it might turn out that Roubini will be right at some point about the dollar, the yen, and the Swiss franc outperforming gold. But at my firm, we believe that in a long-range time frame, nothing will beat gold over the next few years. We don’t think that gold would form the final top any lower than $5,000, and silver any lower than $100.
For projections of what will happen in the near term in the precious metals market, let’s turn to the technical portion of this essay. This week the USD Index might be forming a bearish head-and-shoulders formation and gold stocks are failing to break above the rising resistance line, just like gold is.
Let’s begin with analysis of the Euro Index (charts courtesy of Stockcharts.com).
As you can see on the chart below, gold has recently moved more or less against the euro.
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