With things not looking good enough for the bank of england to raise their rates today, weak private sector jobs yesterday and not so hot public sector jobs numbers expected tomorrow. All could point to a possible rise in the dollar, and a correction in metals.
The dollar is extremely over sold at the moment. Dollar shorts have started to cover, with evidence that it will continue as profits are taken. Now that a bigger window has been opened in to Europe’s real economic condition, euro investors see the possible downward spiral and will shift their investments back in to American currency.
This point is made evident by the $30 turn in gold today, while the dollar strengthened.
With Europe in a situation that could possibly be worse than the U.S.and jobs numbers announced tomorow, a considerable selloff in precious metals could be expected between now and futures expiration Friday next week.
We seem to be in agreement with Kitco;