Yesterday the dollar traded intraday down to levels it has never been at before. I expect we could see an attempt at a rally here but it seems very unlikely that it will amount to much. Take a look at the long term chart of our currency and you can see what the Fed has done to the purchasing power of our money. Be thankful I can't show you a chart from 1913 when the Fed was created, you would freak out. Since 1913 the Fed has destroyed over 90% of the purchasing power of the dollar. Thanks Fed, thanks a lot. If the dollar does try and hold the line in the sand however temporary then Gold may hesitate here for a bit. However with all the recession talk I'm hearing on the media now days it seems like an almost sure bet the Fed is setting their cover for another rate cut next month. I highly suspect that the reaction of the dollar and gold is going to be the same as it was last week when they cut. Dollar down gold up.
1 week ago