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It is understandable that the US currency should devaluate against just about everything given their overly lax money policies and a spineless Federal Reserve. However, it is strange that gold should rise against European currencies given their announcements to end QE which is needed before you raise rates. As easy money central bank policy leaves it should drive up the price of their currency against gold and other commodities.
Nov 07 01:16 am
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All Comments by Moon Kil Woong »Why Gold Is Rising [View article]
If this continues unabated it is a bad global signal of inflation. This would make Australia's central bank correct in assuming inflation is coming and that they need to raise rates sooner rather than later. I wonder when the US will realize that fact. Historically it would be wise to assume that will be a long time after the fact.