Zignals

Don't Let the Dollar's Recent Strength Fool You

Gold is overvalued with respect to other precious metals and gold is the only commodity to have withstood the selling in the sector. A bear tide sinks all ships and gold will need to drop to 'fair value'; this should be bullish for the dollar. However, I would agree a break of 92 is needed on the advance from 70 lows if the downtrend in the dollar is not to quicken.