Make Kitco Your Homepage

Dollar Looks To Break Out; What Does That Mean For gold?

Commentaries & Views

Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.

Equities are in trouble and the dollar looks poised to break out to the upside. Will a strong dollar put pressure on commodities and metals? The answer is not a simple one, but it is my opinion the dollar will have no effect on the commodities or the metals. The dollar has been weak for months, but the metals did not benefit from a weak dollar.

Under normal circumstances, the dollar directly correlates to commodities because they are dollar-denominated. However, with all the Fed and central-bank manipulation, the markets have priced all that information, which has kept these markets under pressure.

Gold appears to range-bound between $1,300 and 1,365, now trading just below midrange. On Thursday, gold was getting hammered, found the lower end of the range and immediately rallied. The current action suggests that gold could test the $1,240 lows, while silver looks to have bottomed.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News

Holiday Promo Gold Bullion