Monday, October 12, 2015

US Dollar Weakness Bodes for Higher Gold, Silver Prices

It's time to check in on my US Dollar Chart. You can see it's weakened quite a bit since the last time we looked at it.

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(Updated chart)

This morning (not shown on the chart), the dollar is weak yet again. If the dollar doesn't rally soon, it could plunge rather quickly. What do you think that could do to the price of gold, which is priced in U.S. dollars? How about the price of oil?

Some links to go with this chart:

The two-day devaluation of the yuan in mid-August might have been a masterstroke of strategy

China actually triggered a wide-spread revaluation of the dollar. By undermining US export markets, China has effectively taken control of America's interest rate policy from the Fed. She has shown that China, not America, now sets the pace in the global economy.  MORE.

The dollar just received a death sentence
Yes, the usual embarrassing hypey headline, but read the story for its insight on how foreigners dominate the US dollar market, and could dominate it even more in years to come. MORE.

This plays to a thesis I've been working with for quite some time, that the Fed doesn't dare raise rates for the ripple effect it could have in foreign debt markets.

Good luck this week, and good trades.

1 comment:

  1. Um, Sean, and Business Insider are the two single worst places to go for informative commentary on monetary issues.

    Literally. You're better off asking your bowel movements for their opinion.