Late last night KWN warned US dollar rally was coming.  Here’s what to expect next for gold, silver and the dollar.

January 25 (King World News) – Late last night KWN warned a countertrend rally in the US dollar may be at hand (see portion of last night’s note below):

King World News note:  As we near short-term support on the US dollar, it’s quite possible we may soon see a countertrend rally in the dollar.

It didn’t take long for the countertrend rally in the dollar to unfold.  This was the excuse as Peter Boockvar explains:

Trump’s dollar comments – “The dollar is going to get stronger and stronger and ultimately I want to see a strong dollar” said Donald Trump in his interview to be aired tomorrow morning on CNBC.

I wonder who tapped him on the shoulder to say this as it of course comes right after Mnuchin’s comments, and back in April 2017 Trump said:

“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting, that will hurt ultimately…It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.”

It’s better that we don’t get confused by a back and forth like this. Either way, the dollar is having a sharp reversal with the dollar index back above 89.

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King World News note:  At critical junctures, comments from the U.S. President or Treasury Secretary can be used to bully major markets and that is precisely what we saw with the countertrend rally in the dollar today.  In fact, it’s quite possible for the countertrend rally in the dollar to continue, taking the US Dollar Index briefly back above the key psychological level of 90.  What is important to watch is how the dollar trades after the rally.

King World News - Silver ETF (SLV) Plunges For 14th Straight Day!In the meantime, commercials are heavily short the gold market and that could lead to some short-term volatility to allow the bullion banks to do some short covering.  Pullbacks aside, the gold market has seen a stellar rally up to this point and a reaction will not do anything to hurt the longer-term trend, which will be higher for years to come.  

Bull markets can be unpredictable and volatility is always designed to shake out the weak hands.  For those of you who purchase physical gold and silver on a monthly basis, stay disciplined and make your purchases at the same time each month.  Do not try to get cute and time the market.  With the gold prices headed tremendously higher, the current volatility will just be seen as noise in the coming years.

***ALSO JUST RELEASED:  John Embry – The World Is Going To See Gold Repriced Thousands Of Dollars Higher CLICK HERE.


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