Loading ...So many were insisting that the $ didn’t matter anymore–and that the Yen determined the fate of gold
I disagreed…now the $ seems to be breaking out & causing high anxiety for the gold bulls…where are all the Yen advocates? I can’t recall when but wasn’t there a period when gold went up with the dollar?…we know it went to $850 in 79-80 when interest rates were 10-12 & 14 percent…
Everybody seems to agree on 81 & 11 Gold tops yet few can figure out or agree on how it got there and exactly what initiates a Bull market or a Bear market?
What’s your theory Richard640?
RED LABEL
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*One thing is sure: gold NEVER starts a bull run when it should-that is to say in response to a financial or geo-political event—yes, it will pop for a day or two…like at the start of the gulf war—or 9-11 or the nite trump won…for the past 25 years that I have been keeping a jaundiced eye on gold, it has just started for “no reason”—with no warning bell—a switch is just turned on–—it used to just start and go on runs of 20 or so up days out of 25—[but it’s been a long time since that happened]…and then the “switch”—just as mysteriously—would be flipped off….O, yes, I have seen arcane and imaginative analysis having to do with interest rate differentials, systemic confidence models etc etc—but they don’t seem predictive either…in short I dunno what causes a bull run in gold…
Don’t know if this helps, Richard, but have you noticed the YEN is tanking while the dollar is breaking out higher? Double barrel for gold. Japan JGB interest rate is 5 basis points, US treasury is 300 basis points – 60 times higher ! Oh, and REAL interest rates in USA are rising. Triple barrel. Meanwhile N Korea wants to talk nuclear disarmament, missiles have stopped flying in Syria, and China – well, don’t know for sure, but China may allow a few trade concessions. And inflation? – well, rising interest rates are biting into commodity prices, maybe except for oil so far. Of course all this could change tomorrow, or next week, or next month. In the meantime gold is up against a nasty head wind.
Shoot the messenger
🙂
SILVER FOX—BIG CHIEF RUNNING BEAR REPLIES:
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In the meantime gold is up against a nasty head wind.”
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U speakum heap big truth…Ugh! Brother, you’ve got that right-I agree!