Gold and Silver Climb on Sunday Open as Dollar Within 70 bps of Critical 200 day Moving Average
by Kenneth Schortgen, The Daily Economist:
As markets opened for Asian trading on Sunday evening in the Western time zones, the dollar continued its slide downward following the House’s failure to bring about a healthcare vote to the floor. And with gold moving up nearly $10 in the first couple hours of global trading, it may only be a matter of days or even hours before the dollar falls below, and gold crosses above, their 200 day moving averages.
On Friday the dollar index showed a close for the USD of 99.77, and had already dropped below its 50 and 100 day moving averages earlier in the week. And with Congress appearing to be in a stalemate following the healthcare vote debacle, the markets are not trusting in the legislature to be able to deal with upcoming debt ceiling discussion that is currently ticking down for the government.
Gold and silver on the other hand are both becoming beneficiaries of the dollars free fall, and the Fed’s inability to deal with economies ongoing stagflation.
