Precious Metals Overbought: Dollar strength

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By Investing Contrarian
Published: November 16, 2009

All asset classes and currency markets are pointing in one direction for the next week or so and that is an immediate strength in dollar. GA Alpha Fund has reduced its silver and eur/usd holdings by over 50%

Here are two charts both of which is supporting a strong reversal back to their 50 Day averages. Gold should defintely test 1070 while silver may go under 17. But if you see this levels, do yourself a favour and go Long Silver and Gold and EUR/USD.

Gold Charts
Picture1
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Silver Chart:

Picture2
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