by Michael Maharrey
Gold had another precipitous drop on Wednesday (Sept. 23), falling through the support level at $1,900 to a 2-month low. That has led some to ask – is the gold bull dead?
The concern is understandable but I think it’s too early to declare last rites. In order to believe the gold bull run is over, you have to believe the Federal Reserve is actually going to tighten monetary policy and the dollar is going to remain strong.
That seems rather unbelievable.
The big drop in gold and silver has primarily been driven by dollar strength. The dollar index hit a two-month high on Wednesday. Investors have moved into the dollar due to concerns about a resurgence in coronavirus in Europe and the possibility of further economic lockdowns.