The USD Bounces as Gold and Silver Tumble: That's What we Want! Sam Kirtley   It was close. It was very close. The US Dollar Index went as low as 80.02, so very close to breaking down through though critical support at 80. However, we didn’t want the USD to break 80, not yet and we were pleased to see the USD begin to bounce and believe it or not, we were happy to see gold and silver take a tumble. Why? Basically we were pleased to see this for two main reasons. Firstly, the USD has been falling from 83.27 almost non-stop for a month. Technical indicators such the STO, MACD and RSI were all on the floor, in fact its possible that the RSI was actually down as far as the basement. Therefore any breakdown through the 80 level would have been short lived and the dollar would have risen back up, perhaps leading to speculation that 80 was not in fact a major support level. Now that the USD has bounced, it can be a dead cat for a few weeks before really breaking down through 80 and falling much further than it would have done if it had broken 80 a few days ago. Secondly, we are pleased that gold and silver fell because that’s exactly why we are invested in them; we want them to move in the opposite direction to the dollar. Therefore when the inevitable terminal decline of the USD comes, it will catch gold and silver and our gold and silver stocks will soar to all time highs and beyond. We see the USD enjoying a bit of a rally over the next few weeks, but this will be short lived as we think that the next time the USD tests 80, it will break it. Then we will see a large decline in the USD index and a big upswing in gold and silver starting at the end of the summer. For ideas on which gold stocks to invest in, subscribe to the Gold Prices newsletter at www.gold-prices.biz completely free of charge. Sam Kirtley www.gold-prices.biz bob@gold-prices.biz DISCLAIMER: Gold Prices makes no guarantee or warranty on the accuracy or completeness of the data provided on this site. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This website represents our views and nothing more than that. Always consult your registered advisor to assist you with your investments. We accept no liability for any loss arising from the use of the data contained on this website. We may or may not hold a position in these securities at any given time and reserve the right to buy and sell as we think fit.