A Surprising Look At The US Dollar, Commodities And Gold

A Surprising Look At The US Dollar, Commodities And Gold from King World News

As we continue trading in what promises to be a wild October, here is a surprising look at the US dollar, commodities and gold.

Dollar Rebounds From Severe Selling Pressure
From Jason Goepfert at SentimenTrader:  The dollar has recovered. The U.S. dollar has rebounded strongly from severely oversold conditions, jumping more than 2.5% over the past month. This comes on the heels of a severe oversold condition over multiple time frames. Other times it showed a strong 1-month return following a 5% triple-time-frame decline, it led to more losses and was not a good signal that momentum had shifted. Commodities did better, though gold was about in line with random…

A Dollar Recovery

Bottom Line

• The U.S. dollar has rebounded strongly from severely oversold conditions

• Other times it showed a strong 1-month return following a 5% triple-time-frame decline, it led to more losses

• Commodities did better, though gold was about in line with random

One of the markets that has received the most attention in recent weeks is the U.S. dollar. Analyst and money manager opinions vary wildly about the reasons for the dollar’s recent rise, or its potential impact on other markets like stocks and bonds.

The strongest and most consistent (but still far from perfect) correlation between the dollar and another market is commodities, so the buck’s rally has been a modest headwind for many of those contracts.

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King World News

Interviews with market experts from around the world with a focus on precious metals.