Stronger Dollar, Weaker Gold
Mid-Day Minute for Fri January 29th 2010
by Mike Paulenoff, www.MPTrader.com
by Mike Paulenoff, www.MPTrader.com
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The Dollar Index (DXY) continues strengthen (79.41 last), which is making life difficult for gold and the SPDR Gold Shares (NYSE: GLD). With the DXY making new recovery highs, its inverse relationship with gold remain remains very much intact, as the GLD presses marginally below its Dec 22 at 105.31. My near and intermediate-term technical work in the DXY argues for higher prices to 80.00 next and thereafter to 82.00, which if accurate implies lower gold prices that projects the GLD to the 100.00-99.00 next target zone.
