Tuesday, July 3, 2007

Building A Bottom

Clearly the US Dollar is on the ropes. The past two trading days have been less than kind to Charmin's dirty cousin. Gold and Silver have been the beneficiary of this Dollar downturn. But as everybody knows, there will be NO surprise if the Dollar finds some "mysterious" buyers today and Gold is "sold on profit taking". LOL, "profit taking"...

Gold made another nice move Monday, and has now retraced 50% of it's fall from early June highs around 675. 653 now becomes near term support and 661 the next level of resistance.

Silver had a stunning day. Silver shorts were pressured out of the box Monday as Silver left them slack jawed as it broke away 12.46. Silver is now back to it's 65 week moving average and may have to fight tooth and nail to get that line back and hold it. It will have to save some strength for the battle royal looming at 12.75.

Oil was very strong once again today overcoming early weakness to close over 71 at a 10 month high.

The worthless US Dollar, as always, will be the ultimate key to the Precious Metals future. As it strives to prove it's worthlessness going forward, Gold and Silver will push to squeeze the shorts.

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