Gold – Big Trouble this Weeek

Expect a tumultuous week ahead for gold and silver. The FOMC meeting and the intensification of the Greece issue will drive increasing volatility in the currency markets and in turn drive severe swings in gold prices. I expect gold to drop sharply on the dollar index’s retracing of prior highs. Trading in the SPDR Gold Trust (NYSE: GLD) last week was in tune with recent volatility, but this week’s trading in gold and silver relative securities should be even more exaggerated. Two significant issues including two key events should offer fuel for the dollar, and in turn discount the price of gold in dollar terms. The two issues are not uncommon to us, but there will be a special focus on them this week and appropriate intensification of relative volatility. See the report on gold here. Article interests Market Vector Gold Miners (NYSE: GDX), Market Vector Junior Gold Miners (NYSE: GDXJ), iShares Silver Trust (NYSE: SLV).

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