USD up *and* PMs rising...

[68Camaro]

Doesn't happen often. When the swiss disconnected from euro and greece elected the leftists this flight to value happened. Starting again today. What do traders know that isn't yet in the headlines?

[Saabman]

I saw this and thought it might be relevant........

https://invest.usgoldbureau.com/news/go ... dium=email


"Gold’s relationship with the U.S. dollar is about to change

goldollar

In light of recent events, gold's relationship to the dollar will never be the same. Yahoo! Finance reports that the gold market is headed towards Asia, disassociating from the dollar.

The World Gold Council (WGC) cited that as gold moves more and more towards Asia, the relationship is set to diminish. Currently, the price of gold is reflected in the currency, but according to the WGC, it's actually a little more relevant than it should be.

The movement is sparked by an increased interest in gold in the Eastern countries, namely China and Singapore. Asian markets dominated the gold supply in 2013, making up over 80% of the demand. And more often, gold is being bought and sold in non-dollar currencies.

The greenback will not be completely cut off from the metal, however. The U.S. is still a huge power in the political and economic sphere. But, this does beg the question, what implications does this situation have? "

[theo]

I've read a number of articles detailing how badly gold done against the U.S. Dollar, and then how well its done against other currencies. Considering the likelihood of PM manipulation, the most realistic end game is a gold default, probably forced by China. . . perhaps THAT is what is in the wind.

[Doctor Steuss]

My fart in the dark guess... people are hedging because of the Iran talks.

[johnbrickner]

The flight to safety cannot be denied. Perhaps it was the Swiss going negative on their 10 year note and Mexico issuing 100 yr bonds denominated in Euros. This would be my guess. But with the dollar (U$D) gaining strength, gold has to gain the same strength in order to stay the same price vs U$D. It has to show even more strength to rise in value vs the U$D.

The U$D has been on a tear over the past few years and is still showing well especially with countries in Europe showing negative returns on interest rates. Should our fiscal policy see an increase in interest rates more cash from other countries should move the US way (I in no way see a very big move here, more likely a token move as appearance is everything). This will assist to keep the U$D stronger in relationship to other fiat and keep the perception of it being a safe haven to park cash.

A quick review of the charts show only the Swiss Franc and China Yuan as major currencies holding their own over the past few years. Others have more expertise than I here. Additionally, given the economic and political stability and centralized Asian location of this nation state, it's difficult not to like the numbers shown by http://www.tradingeconomics.com/ for Singapore.

Advice? Dare I go out to on this limb? I am no expert, just an avid reader with a view towards the bigger picture. So, at your own risk, as I could easily be talking out my rear end.

As long as the U$D continues to strengthen against virtually all other currencies stack dollars. When PMs show weakness against the U$D but at the same time, strength vs other fiat, stack PMs. Be prepared to move out of U$D if the show is still going on and the IMF is showing great progress towards their currency (Special Drawing Rights) and policy to lean favor towards BRICS nations. Seems as though the IMF with their SDRs will be the next lender of last resort. But, I wouldn't discount China having a plan B, and C, if she does not like the IMF progress.

Might be a good idea to track the IMF Spring meeting April 17 - 19 and listen to what IMF Director, Lagarde and World Bank Group President, Jim Kim have to say. Sort of like why we listen to the fed chair. I anticipate should current trends persist this would be a good idea as the fed will have less influence over world currency and the IMF/World Bank more. But, it could be I am looking way beyond the close horizon with these eyes.