Tuesday, December 8, 2009
February Gold is down because of the strengthening Dollar but well above yesterday’s low. Investors are being “coached” by gold bug analysts to “buy the dips”, but this strategy could
prove to be risky if the Dollar strengthens further. The recent vertical rise in this market suggests that an asset bubble may have been formed. Without new central bank buying pressure, the small
trader will not have enough money to support another leg higher. This could lead to a further collapse in this market to at least $1107.00 over the short-run.
March Crude Oil remains under pressure because of lower equity prices, a stronger Dollar and low demand. A shift in trader mentality out of higher yielding assets could drop this
market into the low 70’s over the near-term. Speculators drove this market higher and speculators leaving this market will drive it lower.
The December Canadian Dollar is trading lower ahead of this morning’s Bank of Canada announcement at 8:00am CT. The BoC is expected to leave interest rates at 0.25 percent. It should
also reiterate its stance to …
