Dollar Breakdown Is Bullish for Gold Miners

by Sean Brodrick on June 6, 2013

Earlier this week, I posted a chart showing a potential retracement/support levels in the US dollar, working from the May low.

old chart of dollar

(Updated chart)

I had to add the last bar by hand due to Stockcharts’ persnickety habit of only updating the US dollar index at the end of the day. Obviously, the dollar index broke through that support. So, we have to move on to the next chart.

us dollar new chart

(Updated chart)

This chart looks for support from the February low. If support around 81.10 doesn’t hold, then the bullish dollar outlook is in question.

In the meantime, gold is going higher and the miners continue to strengthen.  Miners with the potential to outperform should be added now.  Junior Resource Millionaire has been adding them since last week. Be careful, and do your own due diligence.

{ 1 comment… read it below or add one }

William King June 8, 2013 at 11:29 am

I think the mining stocks will go under when stocks slide to the 6000 level because there are too many costs that
are incurred in geomining; I.e., labor, research & develop
ment . what do you think?

Reply

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