GOLD & The US Dollar

Just wanted to do a quick post to start the week and speak from some thoughts I had over the weekend. It is Sunday Night about 10:00 EST, and all is quiet for now in the markets. I will be very happy to see GOLD hold most of its gains from Friday over the next 48 hours, I will take that as a very good sign moving forward! I am curious to see how US equities start the week, will we see the usual wackiness- equities are achieving gains because of the perception that QE is here to stay because of the not so luster unemployment report or have we reached the point that the market has exhausted itself? We shall see in the coming days, my opinion is that equities have already started rolling over and now the fundamentals are starting to show some cracks in this HUMPTY DUMPTY US economy!

I have not talked much about the action in the Dollar because quite frankly I just have not had a good feel lately. You know I am bearish on the Dollar but I did expect some strength a few weeks ago and we got it and I also pointed out a nice move in Treasuries from the very bottom. I am showing a daily chart in the Dollar because it appears to be rolling over from the current levels. Have a look

The job # does not make the case for a strong dollar, even the Euro is more than 250 pips off of its lows made last week. 130+? I guess I haven't had a good read on the currencies because they just do not make sense to me anyways! Is the dollar justified at these levels, I certainly do not think so but every nation has its problems. If equities do not roll over and crash hard, that would be because of expectations of continued money printing by the FED and the dollar is at a vulnerable point right now,in my opinion. Lets keep an eye on how the markets start the week.

I would like to leave you with an interview of my Gold mentor Jim Sinclair from this past weekend. Please take the time to read, very interesting take and the Man knows what he is talking about when it comes to the gold market
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/7_Sinclair_-_Stunning_Shift_In_US_Government_%26_Fed_Gold_Policy.html

Good Night
Martin