The government bond crisis and currency crisis is not here, it is in Europe.
About a thousand 'Bugs have lectured endlessly about the inverse connection between the dollar and gold. When there's presumably a problem in Europe the players pile into the dollar.
Certainly, the move in EURUSD is quite evident by now, ditto credit rating downgrades and sharp Sovereign CDS moves in Southern Europe -g- Eurozone's scared nellies are buying US treasuries and gold.
What happened to the holy inverse connection between dollar and gold?
They are not taxed on gold either.
They are taxed on their unicorns.
US sovereign situation is not terrific, but quite a bit better than in Southern Europe, and so far the market perceives it as "safe".
What evidence can you provide that supports any of these conclusions?
Thus, not surprisingly, gold currently moves with the dollar,
So when the dollar starts down gold will go down?
It is true that once the scare passes, gold could drop sharply.
What scare is that?
However, so far we have been moving steadily toward default.
Who is "we"? The US? If so, what do you mean by "default", and what evidence can you present that supports that conclusion?
A bit of improvement since May spike, thus, gold and dollar topping.
Gold and dollar topping because of what? |
