We all know that gold shares rise before the gold price rises and fall before the gold price falls. With gold at the amazingly high price of $440 why are gold shares so weak? Because they are anticipating a SUBSTANTIAL correction in gold. Ridiculous you say? Not if you have a careful look at a chart of the long term US dollar index. Why is the US dollar not falling any more? Because it has found long term support, just like in 1995. It is rebounding very strongly. Imagine just a 50% technical bounce back from its downward move. It could happen. In which case the price of gold and gold shares will be decimated. All you HC chartists who are so bullish on gold I suggest you get out a long term chart of the US dollar index and have a very careful look at how long term support is holding. Mr. Stolwyk who keeps saying I'm getting it all wrong, maybe you should also carefully look at that long term chart. Why do you think the US dollar rose so strongly last night? That support is holding very firm.
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We all know that gold shares rise before the gold price rises...
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