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Citi: Strong dollar could send gold below $1K

May 23, 2016 8:30 AM ETGLD, IAU, GTU, DGL, DGP, DZZ, DGZ, UBG, UGL, GLL, SGOL, PHYS, UGLDF, DGLDF, OUNZ, GYEN, GEUR, GLDI, QGLDXBy: Stephen Alpher, SA News Editor37 Comments
  • You would have to go back to September 2009 to find gold in three digits, but the team at Citi sees no reason the metal won't head back there if the dollar index (currently at 95.3) rises above the 100-level.
  • They take note of a chart showing a pretty strong inverse relationship between the dollar and gold, and another chart showing the dollar's long-term momentum upward.
  • A boost to gold in the past, they note, is the market's inability on two other recent occasions to push the dollar through that 100 level. Both times - March 2015 and January 2016 - 100 failed, and gold rallied.
  • Gold's lower by 0.3% this morning to $1,249 per ounce.
  • ETFs: GLD, IAU, PHYS, SGOL, UGL, DGP, GTU, UGLD, GLL, DZZ, GLDI, OUNZ, DGL, DGZ, DGLD, GYEN, GEUR, UBG, QGLDX

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