Dollar and Precious Metals Both Are Up

The U.S. Dollar is having a bit of life these days. Notice on the above graph from www.stockcharts.com that it appears to have almost a "W" formation. This is the third time it has broken above its 50 day moving average since December. However, it is important to notice that each high is lower than the preceding high. We would have to see an upward move above about 78 for the upward movement to continue. It would also have to move above 79 to cross the 200 day moving average. Both seem a long hard row to hoe, but not impossible in the short term.

The lowering of interest rates by the Bank of England and the less strong comments out of the ECM are likely behind this sudden bullish interest in our dollar. Were the Euro interest rates to be dropped later this Spring, the dollar would be strengthened to some extent. It is also of interest that the Euro is losing relative value with the Yen.

Gold, silver and platinum have moved strongly upward over night and into this morning. Gold is at 918.80, silver 17.04, and platinum 1874. That platinum is really on a sprint which is likely due to the power shortage in South Africa which normally produces some 75 % of the platinum for the world.

Almost without exception, the mining stocks are moving upward. Here are a few CDE 4.34; CDY 1.10; DROOY 11.40; EGO 6.12; GDX 48.15; GFI 13.72; GSS 3.70; HMY 9.94; IAG 7.61; KGC 22.11; KRY 1.87; MRB 4.94; NEM 50.90; PAAS 34.44; SLW 15.04; SSRI 33.59; & XRA 4.024. The bullion trust and ETF >> CEF 12.52 and GLD 90.55. We are seeing some fairly good gains in among the miners. Perhaps, this is due to the spectacular series of highs reported on Platinum and the increased reporting on gold.

Fridays are always interesting days as traders are setting their positions for the week end. It is also the time of the week when we must be looking forward to corporate worship on the Lord's Day. This is not an option to those whose God is the Lord. He demands that we meet in corporate worship and praise of Him. After all, He is our Creator and Sustainer. Further, He gave His Son to die on the cross for His people. Our sin debts have been paid, but not by us. Praise the Lord!

Best to each, Doug