The Dollar/Yen is now comfortably above the 113.00 Yen level and is looking to test the mid-July high of 113.71. With the Dollar in nose-bleed levels from an overbought perspective, I’ll be very surprised to see a close above that previous high. The Dollar may breach that high and take out all the stops that lie above but I will be a heavy seller of Dollar/Yen should that occur. The Precious metals are holding up fairly well in light of the Dollar’s overnight strength. This just bolsters my opinion that a low was made in DEC GOLD at my target price of $462-$463 and, should my outlook for the Dollar actually come to fruition, we’ll look back in a few weeks and see that the decline in the Dollar was the catalyst for what should be new highs in Gold and Silver prices.
Nothing has changed in the Copper market except the price. It’s hard to believe that in just a little over 2 years Copper has gone from 75 cents to roughly $1.75. So, it’s onward and upward for this market as it continues to defy gravity. My outlook for Copper remains unchanged as $2.00 is still my upside target.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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