Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Starts the Day on a Weak Note
March 19, 2020 - (Gold Market Wire) - Gold started the day on a continuing weak note as it struggles to break free from the power downtrend. The seemingly unstoppable surge in the US Dollar, which has pushed the American currency to trade under 1.15 to the British pound, and sub 1.09 against the Euro is blocking any attempt by Gold to rally.
The scramble for US Dollars is now reaching manic proportions. As European bond markets come under pressure this will only intensify. Gold is performing quite well against every currency in the world - except the Head Honcho - the Dollar. The USA is preparing Trillions of Dollars in hand-outs and government assistance of every type imaginable, from free money to bailouts of whole industries - and still the currency heads higher. Gold Bugs can scream all they want. It is merely their meaningless sound and fury signifying that the world's last liquidity provider - the Federal Reserve, and the currency they create - has the world at its door begging for more Dollars. It is, after all, the currency they have all borrowed in. And it is that salient fact which is the foundation of this particular debt crisis the world is in.
That kind of demand is no challenge for the tiny gold market. In consideration of that, it should be considered a result that the yellow metal is not considerably lower.