Gold and Oil triggered a SELL off on Tuesday 4 Jan 2011 with the prices dropping below $1400 and $90 respectively. The Dollar Index rose above 80. A close above 81 will trigger a move up to 83. A strong Dollar will obviously impact the Commodity prices. Oil Prices are Seasonally weak in January, so I would look for a pull back in the Oil price to $80-84 by the start of Feb 2011. Gold looks like it may pull back to $1250-$1275 over the next few months. I will look to add to my GOLD Mining shares in 3 weeks time. Target purchase date being Tuesday 1 Feb 2011.
Australia market is heavily linked to the Commodity price and is showing weakness. Germany and India are also flagging early warnings signs that the market may be peaking and heading south in the next few weeks.
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