MacroVoices #421 Luke Gromen: More Dollar Liquidity To Come…
Mar 28, 2024
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Forest for the Trees founder Luke Gromen discusses the trajectory of the dollar, implications of a weaker dollar, potential deals, banking regulations, investment decisions, commodities, energy markets, market analysis, price predictions, and Uranium market trends.
The US dollar is potentially set for an uptrend continuation with a breakout above 104.5 signaling further strength.
Gold's resilience and potential for further strength, with a target of at least 2300, supported by a long-term cup and handle pattern.
Silver shows potential for a bullish follow-through, with a breakout leading to a retest of previous highs and higher prices in the medium term.
Deep dives
US Dollar Strength Against Other Currencies
The US dollar is showing strength against other major currencies, such as the euro and the yen, potentially indicating the beginning of a new leg higher. A breakout above 104.5 would signal a potential uptrend continuation, with targets potentially going beyond 107. However, the dollar's strength is still subject to further confirmation in the coming days.
Gold's Resilience Despite Dollar Strength
Gold continues to perform well, recently hitting a new all-time high despite the strengthening US dollar. This resilience in gold's price even in the face of a strong dollar suggests further strength ahead, with a target of at least 2300. The long-term cup and handle pattern supports the potential for even higher prices in the future.
Silvers Potential Bullish Follow-Through
Silver is yet to break its highs of 27-28 a few years ago, but there is potential for a bullish follow-through, especially as gold prices rise and retail interest in precious metals picks up. A breakout in silver could lead to a retest of previous highs and potentially higher prices in the medium term.
Uranium Market Disconnection
The Uranium market shows signs of disconnect between spot and term markets, with conflicting signals regarding the bottom being in. While many charts suggest a bottom is in, the recovery has been slow, leading to opportunities for potential further upside if a breakout above $30 occurs.
Summary
The markets are witnessing interesting dynamics with the US dollar showing strength against other currencies, gold resilient in the face of a strong dollar, silver potentially ready for a bullish move, and Uranium's market indicating a possible disconnect between spot and term markets. These factors present opportunities and challenges for investors to navigate through different asset classes.
MacroVoices Erik Townsend & Patrick Ceresna welcome back Forest for the Trees founder, Luke Gromen. Erik and Luke discuss the dollar, where it’s headed both short and long term, precious metals, bitcoin and more. https://bit.ly/3PES8np