Gold Surges To 18 Month Highs : US Dollar Continues Decline
Gold Bugs are rejoicing as we close in on the Brexit High of July 2016. A lot has been written recently about Gold being just a "Pet Rock" and a "Relic of History" but it continues to defy Central Banker and Crypto Zealot down ramping attempts. It is proving it still is a good store of wealth and has an important role to play as an alternative to Inflationary Fiat Currencies and Volatile Crypto Currencies.
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The recent rally in Gold is now into its 7th week and it has been strong enough to convince me that we will break the Brexit high and maybe even take out the high of March 2014 to give us the strongest Gold price in about 5 years. This rally is not quite as spectacular as the Crypto market has been of late, but for our old-world financial system, Gold taking out these highs will be significant.
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“Why is Gold doing so well?” You ask. Well there are a number of reasons. If you want a bit of a refresher, have a read of my post about the 3 Traditional Gold Price Drivers for some background context. There is obviously ongoing uncertainty around the Trump Presidency, plus we have wavering sentiment in the Crypto Markets, but the main driver seems to be the ongoing decline of the US Dollar. If we have a look at the US Dollar Index (a measure of US Dollar worth) we can see it’s been on the slide for about a year and has just made a new low. This correlates to the fresh rally in Gold and indicates investors are losing faith in the world Reserve Currency (the US Dollar) and are looking for alternative ways to store value. Traditionally this alternative has been Gold.
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The most recent sharp dip in the US Dollar (and correlated sharp rally in Gold) has been attributed to the US Treasury Secretary Steven Mnuchin who was seen as advocating that "…a weaker dollar is good for us as it relates to trade and opportunities" while speaking at the World Economic Forum in Davos Switzerland. For those who aren’t aware, this is the big forum every year where the elite Banksters from around the world get together to consipire plan the global economy for the good of us all.
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According to THIS ARTICLE this year they seem to be more worried about Cryptos than Gold so maybe they are taking their eye off the ball. I think these old dinosaurs are slowly starting to realise they are losing control of the financial world and their monopolies are under threat.
https://www.slideshare.net
https://www.ig.com
https://www.marketwatch.com
https://www.ccn.com
What did I tell you mate....
STEEM, EOS, GOLD, SILVER or SEGS for short!
With EOS and Steem being rated in the Top 5 Cryptos by Weiss and silver up 3% last night....
FIGJAM!
Faark Yeah! Go SEGS! All 4 heading North.
FYGJAY!
I'm happy with SEGS mate. Got a bit of each :)
It's not every day where you see a post about gold on Steemit! Just looking at the chart pattern it is looking like there are higher highs - which tends to be a bullish pattern. Of course, this is just our opinion but gold is a great alternative to currency. It will be interesting to see how bitcoin plays out. Even litecoin.
Thank you for the wisdom ❤️
Thanks. I'm not strong on Technical Analysis but it looks pretty good to me. I know how resistance lines work and usually there's a strong move when it breaks through so if it can get through through the Brexit High then a big move would not surprise me.
Lovin It!!! You're on the money with your article.
The only thing is that the AUD in going up in unison against the USD so not much net gain for Aussies.
Thanks. It does amaze me that the AUD is going up considering we have our own problems, but I guess they're just not as bad as others!
Mostly a reaction to the USD going down - it quite often trends the sames as Gold and Silver.
Sometimes I think inflation is a horrible thing and other times I think that I could care less about the dollar because there are so many other assets that are better anyway.
The financial world has really witnessed a lot of upheavals in the last couple of weeks. And it is still not over as gold is currently experiencing a high point while the USD continues a steady decline in world market.
Those who understand the market are currently taking advantage of the occurrence.
@buggedout Thank you for your usually informative and instructive analytic posts.
I’ve been STACKIN metals for over a decade! About time haha...
Well if you started before the GFC then you should be clearly in front. Nice job!
As I am in Europe I look at the gold price in EURO and as you explain the lower dollar is a big factor in the rise of gold. Measured in EUR it does not get up a lot. One EURO is now 1,24 USD .
It is similar in Australia. I normally wouldn't care too much about another nations currency, but the decline of the worlds reserve currency is significant for us all.
People are worried and they put their money where they think it will be safest, gold is a good bet, it hasn't let anyone down for thousands of years, crypto is still young so it is so much more volatile, but you can make more profits with crypto than with gold.
This is very true. I like Crypto for Wealth Creation and Gold for Wealth Preservation. It's worth having both :)
With the US dollar is at its lowest value in 10 years, predictions of a catastrophic stock market crash and currency collapse are blooming relentlessly. Market trends occur in patterns and cycles. You can trace back to the beginning of record keeping and see the same patterns repeating over and over again. Because… what goes up, MUST come down! This is a great post. We need more awareness around the failing dollar and it's relationship to gold and precious metals. Because of the mirrored relationship between the price of gold and US dollar decline, we'll likely see a significant increase in the price of gold in 2018.
Thanks and I agree that Gold is getting ready for a break out year. I think the stockmarket is entering a melt-up or blow-off phase but who knows how long it will run for.
you have to feel bad for the guy in the house they built that monstrosity behind.