A renewed surge in strength for the U.S. dollar sunk gold prices over the past week, but we're about to enter gold's strongest season of the year.
As the U.S. Dollar Index (DXY) made a renewed run to about 97.50, stocks and commodities suffered the consequences.
The price of silver struggled in the early part of last week as the dollar gained and stocks retreated.
Silver prices gave back about 2.6% in just two days. That would be a short-term blip, with silver quickly regaining all those losses in the next two days.
October was brutal to stocks, with major indexes losing anywhere from 11% to almost 15%. By contrast, the silver price was down just 2.4%, while silver stocks gave back about 5%.
There's little doubt from the action in both the dollar and precious metals that U.S. midterm elections have some sway on investors, which have sought shelter with these safe havens in the face of political uncertainty.
Investors already know how important the dollar is to gold prices, and this last week proved just how true that is.
The dollar's wild ride ended up giving gold prices a big boost last week. Now, worries about the next recession could feed increasing demand for the precious metal, which makes right now an excellent entry point.
I'll show you exactly why in today's gold price forecast.
What happened in gold prices over the last week is going to become more commonplace.
Just last week, I said to watch for a break above $1,235 for a possible confirmation that a new gold rally was at hand.
We're almost there now, and I'll show you the latest gold chart pattern to show you exactly why...
Although gold prices consolidated last week, they've found a new higher level.
The latest gold price rally is finally breaking out like I've been expecting, and it's not slowing down soon.
But now that we've gotten this substantial jump in the gold price, will it be able to hold, and what should we be looking for next?
As we crossed the end of September, the sentiment on gold prices was about as bad as it can get.
But investors are finally getting a reminder of gold's wealth-building potential.
Gold prices get a boost when instability rises. And more instability is on the way...
By A.J. Bursick, Associate Editor, Money Morning - • Print | Email
The widely anticipated September Fed rate hike is now behind us.
And the market's reaction, at least so far, has been right out of the textbook.
The dollar is up, and gold prices are down.
But we know what happens next...
By A.J. Bursick, Associate Editor, Money Morning - • Print | Email
Gold prices continue to do what I've been expecting, as gold trades just north of $1,200.
But there's a case to be made that the gold price will only move higher.
With gold prices still trading tightly in the $1,200 price range, the yellow metal can't seem to gather any momentum.
But that's about to change.
