If you follow the US Dollar, you see it going up during the night then come back during the day. Yeasterday, it was different. The Dollar went up past 76 and put a dent in the PM prices. It seemed to me that the long-awaited Summer rally in PMs was on (see previous post) and that yesterday's events were contradictory.
Today was a different story. The Dollar stayed above 76 then began to move down. Then the PMs moved and gold jumped $22.
What gives, u might ax.
There has been a flight to the Dollar in Europe as the sovereign default of Greece is now likely and Italy and Spain are now in the cross hairs (hence the buying of US Dollars during our night hours, which are daytime in Europe). However, now the US Dollar is coming into the cross hairs as the Obama regime is trying to engineer a US default. Hence, the jump in gold.
The first graph is the US Dollar on a daily basis. You see the breakout coming. On a weekly basis, the breakout is not there. The Dollar is still sinking.
As I write this, the Dollar sank to 75.79 and gold is up $20. to $1,569. The Summer rally is here.
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