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Why You Shouldn’t Get Excited About Gold’s Mini-Rally
Gold seems to be sleeping off its latest mini-rally and lacks the momentum to reach new highs. What happens from here? Has the USD bottomed? And what does it mean when we factor in the EUR/USD pair and poor economic indicators from Europe into the equation? [soros] Q4 2020 hedge fund letters, conferences and more Gold’s Mini-RallyNot much happened yesterday (Jan. 21), but what happened was relatively informative. And by “relatively” I mean literally just that. Gold moved lower yesterday and in today’s pre-market trading, doing so despite another small move lower in the USD Index. The moves are...
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What Will The U.S. Dollar Ring In For 2021?
The fate of the U.S. Dollar will weigh heavily on the future of the precious metals in 2021. At first glance, the USDX’s prospects look rather bleak in the first months of the year, but as the pages of the book turn, the dollar’s likely later ascension could prove rather bearish for gold and the PMs. Q3 2020 hedge fund letters, conferences and more USD Index Continues To Break HeartsBreaking hearts as the USD Index falls in and out of love, the greenback continues to leave bulls at the altar, which is likely to have important implications for the gold market in the following weeks . Dressed to...
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Gold Seeks Direction As US Dollar Index Slips
As of Wednesday (Dec. 30) morning, gold is range trading and remains more or less flat as it seeks momentum. As we wait for the precious metals to act on a catalyst, let’s also take a look at the Euro’s relation to the US Dollar and how both impact gold. Q3 2020 hedge fund letters, conferences and more Gold Doesn't React To The US Dollar Index SlippingOver the last 24 hours, the precious metals market did more or less nothing, despite the new daily decline in the US Dollar Index. The latter is now testing its monthly and yearly lows, while the PMs are not. PMs – as a group – are not reacting t...
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As USD Index is Poised to Pop, What Happens to Gold?
After awakening from its slumber last week, the USD Index may be in the early innings of a short-term breakout. Bursting with energy, the dollar basket closed (on Dec. 22) above its declining resistance line (although more data is needed to confirm a larger move). Q3 2020 hedge fund letters, conferences and more Dollar's Epic ComebackAnd to quote Francis Bacon, because “we rise to great heights by a winding staircase of small steps,” Tuesday’s ‘small step’ may be the beginning of an epic comeback. Please see below: In this week’s early trading, the USDX moved lower and then rallied back up, af...
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Stocks And The Dollar Weigh In
It’s evident that stocks have once again invalidated the breakout above their early-2020 high. They have also closed the week below the lowest weekly September close. Back in September, the S&P 500 index reversed on a weekly basis and rallied once again. This is similar to what happened in 2018 (August) when stocks first broke to new highs. Back then, the volatility was lower, and therefore it’s no wonder that the breakout held and this time (in September) it was temporarily invalidated.Q3 2020 hedge fund letters, conferences and moreBack in 2018, stocks moved to a new high (not significantly ...
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USDX’s Specific Juncture Maintains the Bearish Outlook
In the global financial world, with a highly interconnected economic dependence, commodities, energy, materials, and in particular, currencies play a pivotal role in the stock market’s heterogeneity and connectivity. This applies to gold as well as the world’s busiest precious metal marketplace.Q2 2020 hedge fund letters, conferences and moreThe Inverse Relationship Of Gold And The US DollarUnder normal conditions, gold and the US dollar are in an inverse relationship. Due to its worldwide denomination in USD, any USD weakness pushes gold prices up, and vice versa. Therefore, as far as the USD...
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