RE:USD very strong today. Not good for goldUSD isn't up that much and POG isn't that much down. The volatility should indicate that the market is in flux due to uncertainty, and any movement is without fundamental basis. The signs of inflation are starting to appear in oil and PPI, while higher oil prices might be the salvation of the oil patch, if prices remain higher it will produce a drag on the recovery.
The rule “bet the trend not the news” is especially important in the chaotic, uncertain times we find the markets today. Trying to make any sense out of the market’s response to mining shares whose assets won’t sell for a year or more. The real value of any mining company is its future ability to economically produce metal, not what the metal is selling for today, and news driven movement in the currency markets are only temporary distractions.
During the gold bull in the aught years, we learned to appreciate fiat’s race to the bottom, and today, understanding that covid response is injecting trillions of dollars in capital in all major economies around the world, thus greatly expanding global money supply, while gold production remains flat or falling suggests much higher gold prices this year.
b. 16:1