Today’s analysis will be brief, as there’s only one thing that I’d like to update compared to Tuesday’s comprehensive issue and my gold forecast for November.
Namely, I’d like to point out the fact that the precious metals market is not only reacting to what the USD Index is doing – it’s very sensitive to it.
Market Sensitivity on Display
Two things stand out based on the above chart:
1. The mining stocks rallied earlier today, only to then decline in the following hours.
2. The decline in the USD Index (the at the bottom part of the chart serves as a proxy for it) didn’t cause a bigger rally in or .
The second point is a bearish short-term sign, but it doesn’t tell the whole story, as gold and silver futures moved higher before the U.S. session started. USD’s decline triggered gold’s and silver’s rallies and USD’s comeback triggered moves lower in both…
