Gold moving up - When ???
I listened to a BNN interview this morning that talked about Gold and why it's not trading with the economy, or so it seems.
The thought was that Hedge funds are still liquidating large short positions on the USD trying to get the best price which drives the dollar up as they are forced to buy into the asks on certain redemption dates (that are again, forced on them). If they didn't have to sell they would hold the short position until the recession kicks the economy in the teeth - because apparently that hasn't happened yet. We are experiencing it in the market because we are forward looking and clearly see the EQUITY charts moving from upper left to lower right over the next 6 months.
Anyway think there is merit to that ? I know eventually Gold kicks in to gear as a counter-inflation hedge... Or will it... is this Recession different somehow ?