Mr. G

Is the Local Top in Precious Metals Stocks Already Behind Us?

There was a time in history when the DOW was at 800 and gold rose to $800 the ounce. If this correlation is any predictor, gold could rise above $2000 the ounce. GI

Gold Stocks Slide as USD Index Strengthens – Should You Be Concerned?

I have traded the forex for some time and watched the gold bugs predict $2000 gold over 2 years ago only to see it go much lower. When gold drops, it tanks. Notwithstanding the current account deficit we can see, the US economy has unbelievable resilience. Just ask Gates and Buffet when they lost a billion or so from a previous current account read..I admit the situation is not bright, but caution is always advisable when playing real money. Keep your eye on the unemployment rate next friday. It is a heavy hitter and if it drops, you might be surprised. If it goes higher, I would say the long in gold is still on the table.

Gold Stocks Slide as USD Index Strengthens – Should You Be Concerned?

It is fairly obvious that gold and oil are trading inverse to the dollar index. Looking at the dollar index, It is still in its downward trend technically, but if it goes higher this week, gold and oil could break more to the downside, and the dollar could be bottoming which would be be a bigger reason to wait on the sideline till a more positive direction for the dollar is determined. The key is to watch the US fundamental readouts this week. The chopiness in the market may be resolved if the US economy committs to one side or the other.