gold and the dollar: why?

M

mind

these two continue to amaze me. why is the dollar so
strong and gold so weak? four weeks ago i expected the
greenback to go well above 1.60 to the euro and gold
to leave 1.000 behind.

one bloomberg headline was quite weird:

"gold drops below 700 as investors flee to cash"

it turned out that they meant that investors were forced
to liquidate gold to cover equity losses. still little weird
to me, but least not as weird as a flight from gold into
cash.

illustrates pretty well how confused everybody seems to
be. what puzzles me is that usually, when the US is in
trouble, the dollar falls and helps them. and the fundamentals
for gold are fine, plus the crisis should provide technical
momentum.
 
the market loves to make the public news watchers bleed.


so wherever the public is tipping its weight, it'll be bleeding once market price action confirms.
 
why wouldnt gold get weak vs the dollar? The dollar has pounded every major currency (except for the yen) in the past month. Dollar has pounded the euro, the pound(no pun), the loonie, the mexican peso..ect. Those countries are all paying the same price they were a few months ago for gold in their currency.
 
that is right. actually i see the connection between the
two, yet don't understand the argument for either
from separated perspective. ... and i know how weird
that sounds ...
 
You must log in or register to reply here.
Back
Top