Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Acutely Weak Dollar Providing Support & Tailwind for Gold?


One fascinating aspect to the Gold/US Dollar relationship is that since early July, when the US Dollar peaked at 84.75, it has declined to 79.85, or nearly 6%.

That’s a big move for the greenback, yet Gold remains very subdued, and in fact totally unresponsive to the Sept decline in the Dollar.

Add to the "broken inverse relationship" the fact that on Sept 18, the Fed recoiled from its intention to taper and reiterated the need for continued QE.

We really get the sense that Gold is a lost market amidst historically strong tailwinds.

That said, unless and until SPDR Gold Shares (GLD) breaks its Aug and June lows, we can't rule out a potentially strong latent positive response amidst a vertically diving U.S. Dollar (DXY).

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!