The US Dollar, as tracked by the PowerShares DB US Dollar Index Bullish Fund (UUP), continues to blast higher. This is a flight to safety as the euro is perceived to be in big trouble.
Gold is still holding up relatively well, boosted by massive withdrawls of gold from the Shanghai Gold Exchange. China withdrew 70 metric tonnes of gold from the SGE for the week ending January 16th. That's the third-highest withdrawal ever.
The question becomes, how long can the dollar continue to go ballistic? At what point will a strengthening currency hurt America's export/import balance enough to weigh on our economy?
Also, can the euro ever get out of its own way again?
Gold is still holding up relatively well, boosted by massive withdrawls of gold from the Shanghai Gold Exchange. China withdrew 70 metric tonnes of gold from the SGE for the week ending January 16th. That's the third-highest withdrawal ever.
The question becomes, how long can the dollar continue to go ballistic? At what point will a strengthening currency hurt America's export/import balance enough to weigh on our economy?
Also, can the euro ever get out of its own way again?
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