I went searching for a chart of the USDX that would take us back to early November and the formal announcement of QE2. I found it but look what else I found: another umbrella!
So, obviously, the frustration is that the PMs have been lagging almost everything else in responding to this move down in the USDX. That can only continue for so long as algo-programmed, managed money will eventually make it unwise for Blythe to keep a lid on things at these levels. As you know, I've been waiting all week for a move to 1400+ and 30+. Please go back and review this:
Maybe today's the day? I have a last of 1391 and 29.73. We'll see but if the dollar keeps puking, I'll be right....eventually. For now, watch that USDX. It is your key to the action. At this point, it sure looks like the bottom of the range is in play at 79.20 on the March, which is around 79, or just below, on the cash. For fun, mentally picture a gold or silver chart if 79 fails to hold......
If I had an explanation for this morning's action, I'd certainly give it to you. Our recent leader, Dr C, is struggling, too, so what can you say?
In the meantime, reader David sent me this long-term chart today. I like it. It certainly looks like we will be rewarded for our patience.
The selling in the USDX has really increased as we've gone through the morning and we are approaching the bottom of the range and critical support. Yes, the lack of a PM rally is infuriating/frustrating but this drop in the USDX will, eventually, show up in PM price. Hang in there.