Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
US Dollar Rally Gathers Pace - Gold Pays the Price
March 8, 2021 - (Gold Market Wire) - The rally in the US Dollar continues to gain traction, and take Gold prices lower with it. This morning sees EUR/USD under 1.19, in what, technically, can only be described as a slow-motion waterfall.
The first line has been breeched and, frankly, there is not a lot under it. We have been short the EUR/USD (i.e. long Dollar) since 1.225-1.23, and we see no reason to cover the trade, at all. As much as the Gold crowd will hate it - the US Dollar is going a lot higher over coming months. US Dollar haters should swallow their ego (which has no place in trading) and get out of shorts and stop shorting the Dollar - before they damage their trading books any further. Although merely opinion, the US Dollar looks like it is revving up to destroy the rest of the fx market over the coming months.
Gold may pay the price, especially in the short term - like it is today, but we also think that eventually Gold will make a comeback. The problem is in identifying a market entry point. Right now - we see none.
We will note, in present context, that Silver is actually slightly higher this morning - which should indicate, quite firmly, that the direction of the g/s/ ratio stil has a lot of people looking to sell. We never thought the bounce above the top of the 64-66 box we identified would last, and are getting tempted to short again. When the Precious Metals markets turn - which we think they will, although it may be a few weeks or months away, Silver is going to be the place to be.
For now: Metals sidelines....US Dollar, running the length...adding on pullbacks.
That is all.