Big $ Crash Boosts Gold

The dollar just crashed through 74. It’s at 73.83 as I write this. 
 
USDX Crash Alert

The US Dollar Index measures the strength of the US Dollar against a basket of foreign currencies. When the dollar was strong it reached as high as 190. The USDX is (and has been since fall) showing historic weakness.

Note: this is an important indicator that will help tell us when to sell our gold and silver.

Generally, as the US dollar tanks, gold and silver react by going up.

Gold vs USDX

When  the USDX drops to our target value we’ll have a very strong indication to SELL. My short-term prediction of silver (from Jan 10 when silver was at 15.62) at $21 by July is on track. My long-term predictions are these prices before the end of 2011:

$3300 Gold    $100 Silver
◊◊◊◊ Today: Gold @ $966.70, Silver @ $19.72, USDX @ 73.83 ◊◊◊◊

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2 Responses

  1. We haven’t seen $100 silver yet, although some believe it may be a possible target in the coming months.

  2. […] I’ve shown how gold has been inversely tracking the USDX for the last few years. [See the Feb 28 post.] […]

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