The confusion over the Dollar's strength and the POG
Why the dollar gets bought up increasing its value whenever inflation numbers come out higher than previous releases annualized - in turn driving down the POG, is an abberation of fundamental consideration that fails to account for the loss in the dollars purchasing power. This abberation in fundamental reasoning has been prorammed into high powered market algorithms to automatically raise the dollars value in lock step with lowering the POG whenever there is percieved or real inflation movement. Hence the exact timing and correlation for the dollar's rise and POG retreats automatic like clockwork whether rising or falling locked into programmed movement.
It really isn't consumer sentiment calling the shots but programmed motion with the fundamentals left out. Mainstream investers are willingly bound to the programming that when inflation rises interest rates should rise in turn strengthening the dollar in lock step with driving down the price of gold.
When mainstream investors finally come to be made aware that interest rates are done rising, a revamping of the algorithms on auto pilot that electronically manage their portfolios will take place in line with and in lock-step with gold as a viable hedge for rising inflation in place of the US dollar.
The voluminous government spending, deficit and accompanied Fed debt monetization expected this year will bring the end to any inkling of further interest rate hikes triggering the changes to the programmed algorithms that oversee mainstream investor portfolios.
Its coming in sync with when the masses at large lose faith in the Fed over their ultimate failure to contain inflation.
Currently though, the Fed has the masses believing they are gaining and will win the battle with inflation. They are not and will not win this superficial war. The beast that it is - has been irresponsibly and ineptly left to grow in size and scope beyond their power to do so. They can only lie about it to keep face for a while longer. The writing is on the wall, that of the very timing for a Fed day of reckoning. They are going to lose control in concealing inflation any further in another year and beyond.