The Dollar and Precious Metals

My friend Jack Crooks puts out a free newsletter, Black Swan Currency Currents, which follows the ups and downs of money. It's a great read, and always insightful. I thought I'd pass along a chart that he posted today...

Is the dollar stalling out? I think it's possible. And that would be rocket fuel for gold and silver prices. As I explain in today's Money and Markets, the dollar and precious metals are (usually) on a see-saw of pain. As one falls, the other goes up. The Fed's 14 rate hikes threw the dollar/precious metals relationship out of whack last year; the dollar went up thanks to the rate hikes and precious metals went up for a host of fundamental reasons. Now, if the Fed is done -- and recent minutes from the Fed meetings reveal it is close to done (see link here http://tinyurl.com/flxdh) -- the dollar could fold its wings and fall. And that should catapult gold and silver higher.

My new targets are $780 on gold and $20 on silver. It's going to be a wild ride.

Check out my new gold and energy blog at MoneyAndMarkets.com