Archive for 11/01/2011

I’m back

Sorry for the long silence. I went on holiday at the end of the year and just got back.

Gold and silver spiked on December 31, as did lots of assets. But since then there have been some serious declines in commodities, including gold and silver. It seems there is growing belief in a full-blown economic recovery in the US, while there is renewed attention on the problems in Europe. So far that means the dollar rally is back on.

Today we’re seeing a bounce in gold and silver, but that could be a retracement of the recent decline. We might see some more weakness before the rally into mid-Feb, should that in fact materialize. If not, we could get a major correction in gold and silver, so be cautious. One way to play the current situation is to focus on Euro gold, which will be strong with a weak Euro.

|