anyone trading gold or the US$ or both is playing a dangerous game, on the short side especially.
a) there is no particular reason for the US$ to go up (ask any exponent of the 'fiat currency' theory) but the fact is it does!
b) gold shouldn't be going up against a firming dollar (that's according to amory's theory, where I've said many times it can go up but not in a spectacular fashion until such time as the dollar goes down) but again the fact is for the time being it does!
c) the US market is not supposed to go up against a rising oil-price (inflation, consumer resistance etc) but it does!
a lot of irrational illogical behaviour there. until it makes up its mind one way or the other, it might pay to stay on the sidelines in wonder & amazement.
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