The U.S. Dollar at a 32 month low this morning boosting the price of Gold.
Weakening dollar causing the price of Gold to break thru a solid of support at the $ 1348 level in December. The question remains looking at how far the dollar has declined can we get a sustained rally in the price of Gold?
And the answer is no, not unless we see a rotation out of Equities.
There needs to be a catalyst , a declining dollar helps but the price of Gold needs more. And for whatever reason it may be, North Korea or a total stalemate in Washington, we need to see a rotation out of equities.
I will watching the CBOE VIX Volatility Index for further guidance to see what the Street is thinking as the VIX volatility Index will give us a clue to whether a sustained rally in Gold is in the cards . At this point with the VIX at a 11 handle there seems to be no panic in the marketplace that would fuel such a move.
So we see a nice increase in the price of gold this morning after going thru some stops overnight.
But now it seems the market has settled down awaiting the next bit of new to move it back over the
$ 1350 level in December once again.
Have a wonderful Thursday.
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