Dollar Looks To Break Out; What Does That Mean For gold?
Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.
Equities are in trouble and thedollar looks poised to break out to the upside. Will a strong dollar putpressure on commodities and metals? The answer is not a simple one, but it ismy opinion the dollar will have no effect on the commodities or the metals. Thedollar has been weak for months, but the metals did not benefit from a weakdollar.
Under normal circumstances, thedollar directly correlates to commodities because they are dollar-denominated.However, with all the Fed and central-bank manipulation, the markets havepriced all that information, which has kept these markets under pressure.
Gold appears to range-boundbetween $1,300 and 1,365, now trading just below midrange. On Thursday, goldwas getting hammered, found the lower end of the range and immediately rallied.The current action suggests that gold could test the $1,240 lows, while silverlooks to have bottomed.
Contributing tokitco.com
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Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.