Gold currently Thread March 13

JulieW

JulieW

Well-Known Member
Silver Stacker
Thoughts on the current state of play?

clip_image002_thumb.gif

Source: JSmineset.com

This chart will allow us to track the predictions it makes that the US dollar is about to see a sharp drop this year. As the chart shows, last week the dollar fell through a very important support level (80 on the US dollar index). It now forecasts a fall all the way to 70 during 2014.

If this forecast turns out to be correct, it will have a huge impact on what we are watching here on this blog. A dollar drop of that magnitude that quickly would lead to markets thinking FED monetary policy is failing. It would concern holders of US bonds who would see their holdings being sharply devalued. Gold would probably move sharply higher as well which would also spook the markets. All holdings in US dollars would be hurt.
Click to expand...

I noticed that we hit USD1350 and price was hammered down. That's been the usual pattern when the USD Index has fallen and now is the time that a rise in gold will start the end of the USD if the pundits are to be believed.

This looks healthy:
USGG10YR:IND : 2.63

Crimea does not.
 
JulieW said:
T

I noticed that we hit USD1350 and price was hammered down.
Click to expand...

You'll note the exact timing of todays price drop occurred about 3 seconds after an article was issued on Bloomberg stating that there was a withdrawal of Ruski forces from crimea. Clearly a "risk on" move by the market in response to current affairs. A$ also began its little incline at the same time.
 
You must log in or register to reply here.
Back
Top