Home Precious Metals Prices Conflicting US Dollar Predictions and Projections Now Resolved – Mike Swanson (06/12/2019)

Conflicting US Dollar Predictions and Projections Now Resolved – Mike Swanson (06/12/2019)

There are lots of people out there making various predictions about the US dollar. Some people say the dollar is going to go into a bear market and collapse while others are saying it is going to take off in some sort of global fear trade like it did in 2008.

I’m not going to list all of the people out there, but to name just two Jim Rogers has been one who has been predicting a final dollar rally while Peter Schiff has been a dollar bear.

I point them out, because they are both smart and I like them both.

This is a big issue, because you have to get it right in order to be on the right side of the metals markets and more.

And the thing is the dollar did go up a lot in 2008 while it fell in the bear market of 2000 to 2003 for the US stock market.

I believe that the past few weeks have been key weeks in the markets and talked about that in an interview with Jim Goddard of www.howestreet.com you can listen to here:

https://wallstreetwindow.com/2019/06/howestreet-com-interview-gold-consolidating-to-run-on-fed-rate-cuts-mike-swanson-06-12-2019/

We have seen gold go up and Treasury bonds run as the expectations for interest rate cuts have made such a dramatic shift that now people expect an over 90% chance of a rate cut in September and over 70% for July.

A month ago no one was looking for one as soon as July and the odds for September were around 50%.

The last time there was such a sudden shift in expectations of a new interest rate easy money cycle to come were in August of 2007. When that happened gold broke through $700 an ounce, bonds shot up just like they have done now, and the US dollar rallied too.

This time though the US dollar has fallen.

This is a sign that the US dollar bulls are wrong.

Now that’s my take, but you might be hearing someone else’s prediction on this and so don’t believe it.

I don’t think in terms of predictions.

The truth will be resolved in this chart.

The US dollar has basically been going sideways so far this year with support at $95.00. If it breaks that level then you will know that the dollar bears are correct and the dollar bulls are wrong.

So watch this yourself – don’t just rigidly hold on to someone’s prediction on what is going to happen, but watch for what does actually happen and to see if price signals a change in trend.

The worst thing you could do is miss out on the next big bull run in gold, because you are just believing in a failed prediction instead of paying attention yourself to what is going on.

A key moment is coming this summer.

I am watching this and it’s fun! That’s why I laugh out loud when my top five gold stocks go up.

With gold now trading between $1300 and $1350 this is the time to buy.

Now is the time to get into my Power Investor private trading group.

To join just click here.

-Mike