AFP: U.S. Dollar To Fade As The Gold ETF Heads Higher
One of the key technical signals we were looking for in anticipation of a new major rally in gold was a close above the 50 day moving average. Well last week gold delivered that signal, twice.
Whilst we still need to see a close above $1220 to confirm this move, we are now very confident that a major rally in gold prices will begin in earnest in the next couple of weeks. (ETF Daily News: Investors looking to play Gold can do so through the SPDR Gold ETF (NYSE:GLD))
Last week we wrote how we were expecting a rebound in the US Dollar from oversold conditions. Sure enough, the rebound in the USD did eventuate, with the index rising from 80 to almost 83 in a matter of days.
However we had thought that this rebound in the US dollar would cause gold prices to fall slightly, but this did not happen, instead we saw gold prices increasing with the USD. (ETF Daily News: Investors looking to play the US Dollar on the bullish or bearish side should look at the PowerShares DB US Dollar Index Bullish ETF (NYSE:UUP) and the PowerShares DB US Dollar Index Bearish ETF (NYSE:UDN))
