elwind45

Precious Metals: Emotions Still Stronger Than Fundamentals

The central bank sellers around the world have until the last week of sept. to make there gold sales for the year. Given the fact that economies overseas are underpreforming, it is little wonder that dollar is strong. The returning investors are trading out of overseas markets and running to US bonds for safety. I have been wrong about dollar so far, I really dont trust this dollar rally. It does not feel right to me. I think it is a squeeze and very little else. If domestic M&A were going up or money supply growth would be increasing, I would feel comfortable. Finally the stronger the dollar, the weaker the economy (exports) and the need to print money! The Fed is being restrictive, no matter the negative interest rates.