The continued strengthening of the US dollar despite worsening US jobs and manufacturing activity, and broadening evidence of a sluggish China results from market realization that the Fed's shortened and sterilized QE (Operation Twist) deployed until year-end will be inadequate in addressing the unavoidable deterioration in global activity. As long as the presence of Operation Twist prevents any new QE program, equities rebounds should remain contained, commodities to probe further downside (led by oil until grains turnaround) -- all alongside a rising USD. Throughout, gold and silver compete for which is the preferred dead-cat bounce.
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Here is why $4330/40 gold price is important for swing traders. See how it has become a focal point. It acts as a resistance or support but when it breaks convincingly, market can extend 5% to 10%. You can try it for yourself. It also applied for 2014, 2018 and 2022. Watch here.
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