Dollar strength at the 8 hour view.
The dollar strength tested near a long-term support and finally bounced... for now. The dollar strength's bounce was able to provide a key reversal day in gold and stopped the momentum in silver.
To me, that's a good thing. Why? This event may provide a decent re-entry into precious metals. The ultimate trajectory of the dollar is downwards until about mid-88. The TNX tanked over a month ago. These are ingredients for gold and silver to resume their upward movement. In addition, as more industrial and tech companies rally, more silver will be in demand.
Equities and indices do not get as much deflation as commodities do. If silver and gold pulls back further, that's my buy and hold trade for several months. Hopefully, I'll hold them for over a year so I don't have to pay too much taxes. Long-term capital gain tax is generally 15-20% in the US. Much higher you held it for less than a year.
The dollar strength tested near a long-term support and finally bounced... for now. The dollar strength's bounce was able to provide a key reversal day in gold and stopped the momentum in silver.
To me, that's a good thing. Why? This event may provide a decent re-entry into precious metals. The ultimate trajectory of the dollar is downwards until about mid-88. The TNX tanked over a month ago. These are ingredients for gold and silver to resume their upward movement. In addition, as more industrial and tech companies rally, more silver will be in demand.
Equities and indices do not get as much deflation as commodities do. If silver and gold pulls back further, that's my buy and hold trade for several months. Hopefully, I'll hold them for over a year so I don't have to pay too much taxes. Long-term capital gain tax is generally 15-20% in the US. Much higher you held it for less than a year.