That means that gold priced at todays price in dollars is 4-5% cheaper than it was before the dollar fell. Gold should have climbed when the dollar corrected, but it didn't. And when the dollar rises, I kinda doubt that gold will tag along.
You win Ron, nice to see that some aren't caught sleeping here.
SDR {XDR} Special Drawing Rights, are a better analysis of gold, and currency directions, then just watching that US dollar versus GOLD price. And the story is showing that in the last few days that while the POG was rising or staying steady, it actually lost value with the USD {via US Dollar index} And that SDR shows it clearly. And as you say, when the US dollar index thus climbs again, the POG may very well fall much further.
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Funny thing is that many suggest that JAPAN is the largest buyer of gold. Well the price just got cheaper for them via hte yen, and yet the POG hasn't climbed.
Now Ron, did we just prove GATA point of manipulation, or is it that demand of gold is really for the futures, and futures options writers. Maybe all those nice coins sales are really institutional traders changing into a more liquid format? Will we some day soon see an IPO of a tracking stock on the NYSE called {1/4} Eagle?
Hutch.
PS: The dollar index should rise starting today!
Watch those T-bills... sometime soon Japan and Asia will face their pre-Y2K crisis of confidence, imo, and that will send money rushing for US gov't securities.
Why not rushing to US securities? USA is will handle Y2K better then Japan. Me wonders if this is why Japan has taken on a zero interest rate strategy? USA M2 suggests that USA should climb from here, not fall. Although liquidity is dried up. More volatility, less chances of falling though. |
