UUP – our proxy for the US dollar – has formed a bearish double bottom breakdown at 23.75 and violated bullish support dating back to August of 2014. The preliminary downside price objective is 20.50. A falling US dollar is inflationary and often precedes or coincides with higher commodity prices. Gold seems to have gotten the memo. Oil not so much…
Gold Is Looking Brighter
Oil Breaks Down
USO – our proxy for Crude Oil – has crashed through support dating back to November of last year and formed a bearish double bottom breakdown in the process. Falling oil prices are generally deemed deflationary and, viewed alongside recent weakness in the price of Gold, should give pause to those of you considering fresh long commodity positions.