Dollar Fails, Gold and Oil Rise
We got the test of the dollar’s July high which I had mentioned some posts back, and we failed miserably. Must’ve been the “good” PPI and CPI news.
Weaker dollars buy less stuff, or put another way, it takes more of them to buy the same stuff. Like over 60 of them for a barrel of oil and over 600 of them for an ounce of gold. Get my drift? The action in the charts of gold- and oil-related stocks confirms the situation. If you’re short, double-check that your stops are exactly where you want them; they may be called up for duty very soon.