The US dollar folded like a cheap card table today as the Euro currency rallied ... partly on comments from European Central Bank president Mario Draghi. The market takes Draghi's comments as less dovish on EU monetary policy. Well, if you say so, my European friends. Anyway, as you can see from the bottom of the chart, dollar weakness is bullish for gold. Gold is now poised to make another assault on $1,350.
I think the piss-poor numbers from retailers like Costco and news that office supplies retailer Staples is shuttering 250 stores are probably also weighing on the dollar.Why is the dollar ignoring the fact that US jobless claims fell to their lowest level in 3 months?
Janet Yellin says the Fed is watching the weather. Well, the weather can change. Stay warm, my friends.
One more note on gold. There is generally a drop in mining stocks after the Prospectors & Developer's Association of Canada -- the world's biggest mining conference, which just wrapped up in Toronto -- known as the "PDAC Curse."
But as analyst Eric Coffin pointed out in an interview with Kitco's Daniella, the PDAC Curse is in normal years. This year, 2014, is a year coming out of a bear market. The PDAC Curse is much less likely to happen in such a year.
Seasonal swings have been thrown out the window since the third quarter of last year anyway. My view: Buy value, and hold on for what is likely to be a hell of a ride.
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