Friday, September 5, 2014

Friday Update -- Chart on the Dollar and More

Gold miners got hammered this week, and we had to take another round of gains in Gold & Resource Trader as another raised stop was hit.

I think gold's weakness has a lot to do with physical demand from China cooling off as that country's anti-corruption campaign heats up. They'll be back. And meanwhile, yesterday's dip spurred physical demand.

But the drop in gold prices also has to do with strength in the US dollar. Remember, gold is priced in dollars. As one goes up, the other usually goes down.

First, here's a chart of the US dollar ...

(Updated chart)

The US dollar is on the path to test its highs from last year. The wind beneath its wings is the collapse of the euro, triggered by eurozone stimulus.

August jobs numbers generally sucked. This was expected. And here's a big part of the reason why.

A major New England grocery store chain shut down last month due to a strike. The strike is over. One would think that will help the next round of job numbers.

Overseas, the population of Russia is plummeting like it is suffering a major catastrophe or world war. And no, Ukraine doesn't count. People are generally miserable as the oligarchs squeeze them mercilessly.  A lesson for our own ruling class, not that they care.

Freeport McMoRan reached a deal with the government of Indonesia; laying out a roadmap for how the mining industry in that country could get back on track.

The US imported 878,000 barrels of Saudi crude a day in August, the least since 2009. This chart from InvestmentU tells the real story.

 I'll have more on America's energy production tomorrow. Have a good weekend.

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