Geithner speaks, Dollar drops, Crude and Gold POP off Tuesday’s Lows
We begin our day this morning looking at the Dollar index taking a plunge overnight after hearing Secretary Tim Geithner confirm that the US has “reached its debt level” and that focus will be on ‘lowering debt levels gradually” Traders will certainly be anxious to hear more from the Fed later today when they release their meeting minutes from earlier in May.
Dollar Index |
Gold Futures |
Gold Futures are looking very concerning this morning, and the Dollar Index is not helping it’s cause. With the Dollar in the wedge, and now we see the GC 06-11 is also in a very narrow part of its price wedge. These are signs that this market may be waiting for something….possibly the 2pm Meeting minutes today from the Fed…maybe something else? We shall see very soon today. Bottom line..get me OUT of this narrow wedge into wide open space so I can trade gold.
Crude Oil Futures |
Crude Oil looks a little better than Gold this morning when it comes to the structure of price, but in all reality the fact that we are sharing volume between the 06-11 and the 07-11 contract and we have major news at 10:30am today. You can easily see two major price range in the white boxes and the price wedge in yellow trend lines, with current price at the highs of the wedge.