Gold price actionThe market is now expecting a 1% FED interest rate hike next week.
For the last several months gold has been dropping in terms of the USD and remaining more or less constant in terms of Euros and the Yen. The drop has everything to do with the skyrocketing USD (and to a lesser extent the CAD).
How high can the US dollar go before the US becomes uncompetitive? How high can interest rates go before they destroy the US economy?
We are living in interesting times. It is a bad time to have a variable rate mortgage!