The value of gold and silver are on the rise, but this spells trouble for the declining dollar index which could push as low as 66 points, according to Chris Zwermann, strategist from Zwermann Financial.
Gold made new highs Wednesday and “looks like it’s going further up,” he told CNBC.
“The question is what really does gold tell us,” he said, adding that gold’s strength is “a sign that the dollar is going to weaken earlier or later in the next few days already, and the stock markets turn around again.”
The dollar is on a downward trend, currently resting at about 76 points, but “the dollar so far didn’t manage to come out of this downtrend,” Zwermann said, adding that the dollar doesn’t have the strength to turn around at the moment, pushing the index target as low as 66 points.
While gold strength spells trouble for the US dollar, the silver market is likely to rise with gold pushing the spot silver value to more than $20 per ounce, he said.
- To watch the full interview, see video above