US Dollar: Worst Year Since 1985?

The US Dollar had a substantial rise based on the expectation that the Federal Reserve would be able to normalize interest rates and unwind its massive balance sheet plus a general belief that the Fed's experiment had actually succeeded and that the economy was in better shape as a result.

So the dollar kind of rode that rally and now I think it's starting to surrender those ill-gotten gains. The dollar is on pace for its worst year since 1985. We just finished the month of August, a down month for the US Dollar. It's been down six months in a row and so the weakness in the dollar is one of the reasons that the price of gold has 01:25 been rising.

The Gold Market Gold Continues to Move Higher

The gold market gold continues to move higher ever since breaking out about $1,300. The price of gold is now above $1340 so we've tacked out another 40 dollars. 

I don't think the shorts have covered yet. I think they're still holding and hoping I don't think we've had the long's getting too excited about this breakout above $1,300 it may need $1,400 we need to move up a whole new handle before we really get the big short covering. (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ))

Gold: $1,300 Is Now Support

Gold to me still looks pretty strong. We broke out above $1,300, we didn't have a huge surge but we held 1,300 and we didn't go back below it. We've held here all week and to me 1,300 is now the support right what used to be resistance is now support. Where is the next resistance? I would guess up around 1375-ish which I think was about the high last summer. (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), Barrick Gold (ABX), Newmont Mining (NEM))

Video: Gold Outlook

Peter Schiff talks gold and precious metals.

Gold & Gold Stocks (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX))

I think now that we have cleared out that $1,300 resistance there are a lot of people that thought there was no upside in gold, well they're about to find out just how much upside there was.  I think of course even bigger moves are coming in the gold stocks. (Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX))

Gold Goes Through 1,300 USD

We've been flirting with that $1,300 level all year, I've been talking about all the resistance that was up there and every time the price of gold got near $1,300 it was met with tremendous amounts of selling. There was a lot of supply but as I've been saying the demand was building, this was a coiled spring we continued to see more and more buying beneath the market and the channel was narrowing the distance between the $1,300 resistance and the support kept getting narrower and narrower and I said I was looking at it and I thought it was only a matter of time before we exhausted all that supply and broke through that $1,300 level,  both a psychological level and a level with a tremendous amount of selling. We finally did it!