Foreword
The Dollar Index hit a very important psychological level at $100 on Thursday and closed the week above it despite weaker than expected US economic data.
This level hasn't been seen for 12 years. At that time, Gold was at $350-400 level, and Silver was at $5 level. It means that metals prices grew dramatically compared to the Dollar. With the Fed's "guess when I'll lift the rate" game, the Dollar will continue to be in high demand for the foreseeable future. It will put hard pressure on most of the currencies and commodities, including metals. Crude oil already fell prey to the Dollar, approaching a 6-year low below $50. Their negative correlation is very obvious: the higher the Dollar, the lower Crude Oil moves. Continue reading "Gold and Silver Update: The Dollar Trap"
