Panic Selling in the US Dollar

With gold and silver up and the dollar down, today King World News interviewed James Turk out of London. When asked about the dollar Turk stated, “There are so many important things happening here today, but what I am focusing on is how weak the dollar has been. The key is the dollar index took out its low from last November. The way I see it that means the dollar index is going to be closing in on its all-time low of 70.79. Here is the scarey part Eric, given how poorly the dollar is trading, I think we could see that low level very quickly.”

James Turk continues:


“The precious metals are giving a clear message, namely that the dollar is in trouble. Gold and silver are near their recent highs and this shows both markets, the dollar and the metals confirming the trend.

It’s not just the charts painting this bearish picture for the dollar, the fundamentals are atrocious. With Europe on the verge of raising interest rates and the Federal Reserve set in its ways keeping interest rates low as far as the eye can see, people around the world are going to increasingly dump the dollar.

At some point there is going to be a panic as the flight from the dollar moves from the relatively orderly retreat we are currently witnessing, to a stampede. The charts are telling me that panic is about to begin. As I mentioned in a KWN blog earlier this month, I believe the next leg down in the US dollar will shock the world.”

Source

The US dollar has been grinding lower, what Turk is suggesting is at some point the graceful decline will turn into a panic. If he is right this will ignite the gold and silver markets.