Goldbug At Seeking Alpha Stays The Course

Daryl Montgomery avers, in "Gold Starts Its Technical Correction While Dollar Rallies," that the intermediate-term uptrend for gold is intact; so is the greenback bear market. He uses technical-analysis techniques to make the argument, but he also points out that the last two recent greenback rallies were concentrated in one currency - and can likely be chalked up to central-bank intervention, not a turn of the tide.


A goldbug published at the Market Oracle, is more pessimistic in the short term. Ned W. Schmidt, by tying gold in to year-to-year growth in Fed credit, believes that "Gold [is] in High Risk Period, Could Test Support at $970."


Update: Another technical analyst, also published at Market Oracle, concludes that the greenback may well have turned upwards. The reason given is the US Dollar Index closing above its 50-day moving average: "Taking a closer look at last week’s action, we see that the Dollar has staged its first real breach of its 50-day moving average. This is MAJOR as it is the first time the Dollar has achieved anything resembling REAL strength from a technical analysis standpoint in well over nine months...."