Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Sits Back, While the Dollar Rally Resumes
November 29, 2021 - (Gold Market Wire) - That was a brief respite for the US Dollar haters. Very brief. To be fair, if this past Friday doesn't get them to "see the light", nothing will. Darkness will remain. The long US Dollar position is one which is simply not going to quit...not anytime soon at least. Quite honestly, it looks like the long US Dollar vs. Euro; GBP (sterling); vs. the Yen and especially New Zealand and Australia is going to keep running and running until the entire market blows a gasket, and the G7 has to commit to a total system reform. Trades this open don't come along everyday, and it remains a mystery why the Goldbugs, who all hate the US Dollar, can't simply see the fact that as bad as it is (which it is) there are others that are far worse. Like just about everything.
Would you like to hold NZD/AUD currencies right now? It looks like the Chinese military is doing serious 'recon' in the region, having been parked for a few days gathering intel. How about the EURO - the flagship of a "Union" that is failing so bad, even the FT is publishing articles about how it is political disintegrating. That is truly saying something for the newfangled version of then Berlin Tagesblatt. Maybe they've decided to hedge their bets. The US dollar is now so strong it is even taking the shine of the big Crude Oil recovery trade. Now that is a sign.
Foreign stock markets are trying to move higher, as they should, because their currencies are being devalued... (and not because of economic news)...but even that is becoming a struggle. Meanwhile, the Turkish Lira is being driven into the dust; and still the Goldbugs insist - "The US Dollar is Finished." When they throw in the towel...that is when you should be careful.
First up - a quick note on the European stock markets -
Is this the so called 'recovery' after Friday's blow out?
Do not be fooled - the European economic system is in serious trouble, and so is their flagship currency - The Euro. There is simply no way in hell the US dollar is going to do anything else but soar. And Gold? Well, Gold ain't doin' much of anything... which means its tracking the US Dollar... not falling while it surges, but just sitting alongside it.
That's the big picture. The continued US Dollar rally, and a Gold price that is doing little. For the Goldbugs, there is no relief.
Our picture is unchanged... Long US dollar, and looking for a place to get long Gold. For now, we are flat. If the Dollar rally continues at this pace, we may see Gold dented...but for now, we hug the sidelines and see if our trend line holds.
While we watch Gold's trend line, we are adding US Dollar length - especially, now, against the British Pound. Markets like to look for their next victims, and, honestly, it looks like Sterling is ready for the chop.
As a final note today, we'd like to point our readers' attention to the fact that the US Dollar seems to be rising against every currency that's out there - - except one. Yes, actually, there is one currency that it is not rising against; and the 'airwaves' are very, very quiet about it.
The Chinese Yuan.