The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: ScatterShot who wrote (29568)	8/12/2010 10:39:19 AM
From: aknahow	Read Replies (1) of 71407

I really like the Kitco method. Showing what portion of golds price change is just due to a change in the dollar helps one visualize future moves. For example, if the dollar cannot hold its present strength and falls back to Tuesdays levels gold would move up in dollar terms around $18. Today the pog is moving up strongly but not due to a rise in the value of the dollar. Imagine dollar weakness on a day that demand for gold is strong and one can see up moves of $35 an oz. We know governments defend their currencies against sudden sharp moves. But most are willing to accept slow but persistent declines. Think we saw an overshoot in the dollar due to defense put in place to mitigate the impact of terrible trade balance numbers. Now the slide should resume for standard reasons but also from unwinding of whatever moves were made to support the dollar on Wed.

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