Wednesday, May 23, 2018

Gold price remains steady despite jump in the dollar to over 94 on the index

Perhaps what took place with the severe slam a few weeks ago in the gold market had more to do with paper market speculators being washed out than it did with any other real fundamental catalyst.  This is because even as the dollar has climbed back up to cross over 94 on the Dollar Index here on May 23, gold has remained steady between its current range of $1285 - $1295.

As we type this on Tuesday the 15th, the price of COMEX Digital Gold is down nearly 2% on the day. This places it under $1,300 per ounce and below its all-important 200-day moving average. 
Regarding what lies ahead, as The Banks rout the Specs once again, we ask again today if you are mentally prepared for such a "fakeout"? While we expect the damage to be limited to just $1,270-1,280, what if we see $1,235 instead, in a sharp break designed to drive the Gold Specs as net short as the Silver Specs? – Sprott Money
Gold price chart: 23 May 2018

Dollar Index chart: 23 May 2018


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