Dollar strength is being felt across the currency and commodity spectrum. Gold is seeing another leg down in price as physical demand remains strong. Gold futures are fast approaching the $1322 bottom put in on 4/16/13. Interestingly enough, silver bounced yesterday of the $22.00 level which was the low on 4/16/13 too, but is down today by over a percent.
The gold miners again are seeing pressure on the back of dollar strength and gold weakness. In recent news NEM paid a smaller dividend, because gold prices have slid so much and their dividend is a function of gold prices.
The strong dollar is also being seen in the currency market. The Yen is again depreciating against the USD as the USD/JPY popped above 103 and similarly correlated the Nikkei 225 had a great day raging 2.3%. Japan will continue to be in focus as the BOJ pursues massive easing at the expense of the Yen. A way to play this is long YCS; which is the Pro-Shares Ultra Short Yen.
Despite the stronger USD, copper futures are up…perhaps reflecting the better than expected US economy rather that USD strength (where conventional thinking says it should be down as the USD appreciates).
