...from KWN...James Turk says...

“It’s interesting to note Eric that even though quantitative easing has ended, the dollar remains weak.  Even though the dollar index is bouncing a little bit today, it is closer to the lower end of its trading range.  It is also below its long-ter am moving averages which suggests that today is nothing more than a dead-cat bounce, after the pummeling the dollar took last week.

I think the dollar chart basically confirms my point that quantitative easing will be started again soon.  Last week’s big jump in the major stock market indices is basically saying the same thing.  All we need now is an indication from policy makers that QE3 is imminent.  The effect this will have on gold and silver will be nothing short of spectacular given how sold out both of the metals have become during their correction over the past two months.

When they start QE3, the Us dollar index will plunge to new lows.  Gold will also be at a record high by then as well.  The scary thing is they are going to shove through this debt limit increase one way or another.  If there is an impasse in Congress with Tea Party Republicans holding the line, word has come from Washington that President Obama will use the 14th amendment to declare the debt limit as unconstitutional.  By removing this last piece of discipline, that will open the floodgates and will be the tipping point to send the dollar into oblivion and gold and silver into the stratosphere.”