kingworldnews.com
With gold higher and silver up almost $1.30, King World News today interviewed James Turk out of Spain. Turk had this rather frightening warning about the dollar, “The dollar right now is hanging on the precipice. If we break below 77 on the dollar index, look out below. I don’t think people really appreciate how scary the dollar chart is here, or how ominous the implications really are. There’s no predicting how far the dollar could plunge if confidence breaks.”
Turk continues:
“You’ve got civil war breaking out in North Africa and you have rebellions happening in the Middle-East. In this kind of geopolitical situation, in the past the US dollar would always rally, but this time it can’t even bounce. You know Eric the other side of this coin is that if the dollar falls off the edge of a cliff, precious metals are going to skyrocket.”
When asked about silver Turk stated, “During the most illiquid time of the trading day, somebody decided to take out all of the stops in silver. If you were not following during business hours in the Pacific Ocean you missed it. I woke up this morning and looked at the chart and couldn’t believe what happened while I was sleeping.
The important point Eric is that no technical damage was done and in fact the situation has become even more bullish because that little smack down overnight took out all of the weak hands.
With this month’s important options expiry now behind us, I’m looking for higher prices next week. Even though the March/May spread has flattened a little, the backwardation continues to grow to 2015 and has ballooned further to $1.16. The short squeeze is continuing to develop. The shorts are trapped and whether the trap springs this week or in a month or two I don’t know, but we are getting very close.”
When asked about gold specifically Turk remarked, “While silver did get hit in overnight trading, gold hardly moved and then snapped right back. Remember I said last time that the gold chart is beginning to look really strong, that is what the event last night displayed.
Gold is incredibly resilient and looks coiled for an explosive move higher. We started our initial probe of the all-time high this week closing in on $1,430 before backing off. Look for another probe of that $1,430 level very soon. It won’t be long Eric before we take out that all-time high, particularly if the dollar falls off the edge of a cliff.”
It is worth noting that in his King World News interview today Art Cashin also warned about the US Dollar being on the verge of serious trouble. KWN readers globally should keep a close eye on the dollar next week to see if it begins to break down. If that happens it will increase bids in both the gold and silver markets.
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