The U.S. Dollar Index (DX 1), a well known composite of six leading currencies against the dollar, has rallied sharply since early August. The index is now way above its 200 day average, as well as having traded above its upward price channel since early August … both signs of being quite extended to the upside. I look for a notable correction in the dollar over the next two months or so, a trend which may well help Gold and the Gold stocks. I regard the risk/reward in Gold and the Gold stocks as attractive here. A chart of the U.S. Dollar Index back to January 2007 is included.
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John A. Mendelson certifies that the views expressed in the equity research segment in this research report accurately reflect personal views with respect to the securities, issuers, and other topics described in this report. Further, no part of analyst compensation was, is or will be directly or indirectly related to the specific views expressed in the report.
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