Also, Jim discusses the USD Index. In the interview he explains that 72 has been a point of resistance for the USD (the floor). Jim explains that once the USD (on the Index) goes below the 72 mark, and stays there, the USD is finished.
If you are unfamiliar with the USD Index you can look at it here: http://www.marketwat...sting/index/DXY
The USD Index goes hand-in-hand with the price of gold (and all PM's, for that matter). As the Index goes up, the price of PM's go down. As the USD Index goes down, the price of PM's goes up (in USD's).
If you are curious what the US Dollar Index actually is and how the number is determined, here you go:Definition of 'U.S. Dollar Index - USDX'
A measure of the value of the U.S. dollar relative to majority of its most significant trading
partners. This index is similar to other trade-weighted indexes, which also use the exchange rates from the same major currencies.
Currently, this index is calculated by factoring in the exchange rates of six major world currencies: the euro, Japanese yen, Canadian dollar, British pound, Swedish krona and Swiss franc. This index started in 1973 with a base of 100 and is relative to this base. This means that a value of 120 would suggest that the U.S. dollar experienced a 20% increase in value over the time period.
It is possible to incorporate futures or options strategies on the USDX. These financial
products currently trade on the New York Board Of Trade.