Silver low so far today: 38.94 Gold low so far: 1505. US dollar, 72.860…33 month low going back to July 08
Interestingly, if you pull up a long term chart of the Dollar Index, there is a massive resistance up at the 89.00 level. From a support standpoint, the failure of the 74.50 support band opens the door down to the April 08 low at 71.05
To give you some idea how far the dollar has moved, the high in 2001 and 2002 was up at 121 level… Back in 1985-1986 the Dollar index had been at the 128 level. That’s an even more depressing statistic. From 128 down to 71 is 57 points. 57 is 41 percent of 138. The dollar, in these absolute terms, has dropped 41 percent in relative value.
Just food for thought as we try to speculate about the US dollar’s longer term prospects.
I, for one, will have my buy orders resting down at the 71.05 levels. I hope the same pundits who were recommending Silver 2 weeks ago at the top, will be touting selling the US dollar. Then I know I will be happy being long down there.
That is all.
CER
