Strong Dollar Keeps Pressure On Metals
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Market manipulation never works, and we are now seeing the start of the negative effects of that. The Fed has lost control of the bond market, which continues to tank, pushing interest rates higher. Their last hope was to suppress the U.S. dollar in hopes of keeping global interest rates artificially low. That plan is starting to fail as the dollar starts to pick up steam and looks prepared to break out to the upside.
Gold and silver have been in consolidation for a couple of months and couldnâ€™t take advantage when the dollar was on five-year lows. Now that the dollar is starting to rally, the metals are starting to feel the pressure and every rally has been met with sellers. Both gold and silver were able to bounce off support on March 1 and both rallied hard to resistance and are starting to fail again.
The key levels for gold and silver are $1,300 and $16, respectively. They both look in danger of failing at those levels. Todayâ€™s jobs number will go a long way in determining the next big move, but it looks like a test of the lows is in order. At 8:30 EST this morning when the jobs number is released, look for some wild action and whether or not gold and silver can hold their support levels.