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Strong Dollar Keeps Pressure On Metals

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.

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 couldn’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. Today’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.

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.
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