I dont normally make day to day predictions (but I did yesterday) , but one I would be watching is IF the DXY breaks 92.64 , it is now at 93.15 and if it does, very likely we would see a second leg downdraft for the USD which could see it scale down as low as 89, by which time Gold $2500 should be close.
Make no mistake, the speed at which this gold and silver rally is fast, very fast, it took just 3 weeks for Gold to gain $200, which took several months before that, this is because we have gone into a totally new frontier where there is no resistance and no one can figure out where it could stop. I cannot remember the source I quoted here which says that we may not expect any meaningful correction until possibly $2300.
But if Adam Baratta is right about his thesis of the Great Devaluation of the Dollar, a recent book and which I have ordered via Amazon, then the path ahead for the US dollar would be terrible and that can only mean that Gold and Silver are likely to scale to heights unimaginable in the months and years ahead. And you can be rest assured that the Goldmans of the world would be constantly revising their targets upwards as precious metals continue their march.
So if you want to be in the Precious Metals space, dont wait till DXY breaches 92.64, just like I cautioned all yesterday about this time not to wait till Gold hits $2000!
Personally buy high to get higher strategy requires one to be Measured, have a Longer Term view and to position ahead of this forthcoming event. The sooner we are in, the sooner we can build the cushion necessary to absorb a more meaningful correction that would eventually arise when we get higher from here.
Market participants who are short on capital and require to trade instead of invest, should consider Gold and silver ETFs instead to give better assurance of perfect correlation to price movements as individual stocks may not respond in kind if the wrong one is chosen, and I'd suggest ETPMAG for silver and QAU for gold (USD not AUD) and GDX for major international gold stock exposure. They may not give the higher leverage as you would have with precious metals stocks but their correlation is much better.
