With Pitguru, we will together have a look at metals market in this week:
"Gold broke out last week as a strong dollar is no match for global fund allocation into gold. As fears of an EU meltdown and global banking system failures wreak havoc on the currency markets, the world moves into gold. However, as this occurs the U.S. dollar is diverging from its inverse correlation to gold, rising amid a breakout to the upside in gold. This is not the first time this has occurred but it is critical to be aware of its implications. If a gold buyer from France wants to buy gold with the euro down 5% against the U.S. dollar then gold will be 5% higher to that buyer. If gold rises 5% then it will appear 10% higher to that buyer. In the end the dollar correlation is undeniable but takes a back seat when gold is independently rallying on a global demand surge. On a technical level gold appears ready to resist out below 1202 and the market could be in for a strong decline testing 1110 by month's end. Silver tries to get ahead of the curve then plays catch up when the specs are wrong on the next move. Right now silver is way ahead of itself to the upside, making a price correction in gold potentially devastating for silver bulls".