Monday, November 28, 2011

Gold, US Dollar, SF Hard Assets Conference

Gold was up $25.80 today after the Thanksgiving holiday week.  It has formed a wedge pattern which typically ends with a move up or a move down breaking one of the trend lines.  Based on the US Dollar declining this week (more on that below), Gold should be on the move up at least for the short term.

If Gold should break to the upside, it should not be long before it tries to break through to a new all time high. It's now above the 50dma and the stochastics may now start an upwards trend from an overbought state.

The US Dollar Index looks like it is continuing to produce lower highs (see the post the other week regarding this).  Here is a 2 year chart of the US Dollar Index and it did get close to taking out the last rally high of 80.43, but it could only get up to 79.88 which continues the lower high trend.  It may be on a short term decline with should rally the US financial markets and Gold / Silver.

I was at the SF Hard Assets conference on Sunday and listened to Rick Rule.  He mentioned that there will an increase in volatility within the markets and the people that are prepared to trade it will be rewarded. (Buy low, sell high............he did mention that it is easier said than done).  He mentioned all of the things we already know like European debt, US Debt and if the 30 year mortgage rises from 4% to 6.5%, housing may drop another 25%.

He likes Gold and Silver as a store of wealth and select miners.

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