Cardinal Energy Ltd (Alberta) T.CJ

Oil prices are up, US $ is up, hummm

[VeritasVern]

A diversion from the past, interesting how it appears they will influence markets to try to keep inflation contained. Is this a result of being an election year or now part of the new normal?

[Quintessential1]

As near as I can surmise, The FED isn't even the originator of central banking inflation control. https://www.cfr.org/blog/history-and-future-federal-reserves-2-percent-target-rate-inflation-0#:~:text=The%202%20percent%20target%20was,of%20then%2D%20Chair%20Ben%20Bernanke.&text=Despite%20coming%20about%20somewhat%20accidentally,is%20a%20reasonable%20inflation%20target.  It does make

[VeritasVern]

The US dollar has a big impact on inflation as that is the currency that buy/sells most commodities, not gold. Having a direct influence on the dollar can lessen the impact of inflation. Gold on the other hand has little to no effect on currency and inflation because they delinked the dollar to gold in the 70's. Gold is going up because of demand, from consummers, Governements such as China

[Quintessential1]

Ahh so they are manipulating the dollar higher to try to control inflation and gold is just an unintended consequence?  Could the same not be said for all markets then including oil?  High US dollars make low oil prices as a resulting consequence whether intentional or not?   As for the "new normal" was that not the inteded purpose of The Fed when it was created

[VeritasVern]

We buy/sell commodities based on the US dollar not gold. Between 2006 and 2020 gold fluctuated between $550 - $1850 but inflation was contained at 2%. So gold prices has little effect on inflation, glad we agree on those ponts.   My observation was that the US$/oil relationship has changed in the last two years which is a big departure from recent - historical relationships.  Any

[GoldenArm1]

Gold is a different beast than oil. Gold is in big demand from China. They are paying over spot to get as much as they can. No one in the know and/or free of non-recourse loans is selling to the East. You want a good gold stock, get into TRX on the Amex. They are doubling production and their cost of producing is right now at $900/oz making them a cheap producer.