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Today's Update: Gold stocks are now being exposed to downside pressures ...
An update on the U.S. Dollar and Gold. --- Two weeks ago I posted the chart below on the Dollar because of its potential negative impact on gold stocks.
This is our Super Accelerator Model applied to the Dollar's price movement. When we last posted this chart, the Super Accelerator
was trending up, but the S.T. Accelerator had not given its confirmation of a new up short term up trend yet.
That changed and the now both Super Accelerator up conditions have been met for confirming a short term Dollar trend
to the upside.
The importance of this, is that the Dollar's upward movement will have a negative impact on gold and silver stocks as seen in chart 2 below.
In the chart below, we show the correlation of the Dollar versus Hecla, the HUI gold index, and Gold Corp.
The effect of the Dollar's movement is easy to see relative to what happens on gold and silver related
investments. As long as the Dollar remains in its short term up trend now, downward pressure will continue
on gold and silver stocks.
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