Yesterday’s negative reaction (of sorts) to the celebratory post-FOMC spike last week continues this morning. The US dollar index is bouncing within its still questionable state below the daily SMA 50, gold is taking a normal drop below initial support, silver never got out of the starting gate and the Gold/Silver ratio remains biased upward and theoretically in support of the US dollar as global anti-market.
NFTRH+; Video Update on USD, Gold, Silver, GSR & GDX
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Gary, thanks as always. Very clear and easy to understand. Question: Is it possible that we could see somewhere in the future a situation with rising yields, rising gold, a falling dollar and falling bonds?
Hi John, I think the play is falling yields first. At first casino patrons would interpret that with relief. Then fear of deflation (IMO). Later, with policymakers’ power capped by the bond market I don’t see why gold won’t rise if the US dollar falls due to new inflation from a growing dept pile. But I am trying to take first things first. I think a deflation scare comes first and then future inflationary operations would be ever more economically corrosive (Stag) and I don’t see why gold would not do well long-term.
Gary, thanks as always. Very clear and easy to understand. I have a sort of “dumb” question. Is it ever possible that we see rising rates, rising gold, falling dollar and falling bonds?
Sorry, just realized I double posted. Thanks kindly for the response. I’ll study it closer.