gold, page-31296

Oh have I hit a nerve? The USD has been falling of late due to the market pricing in less interest rate hikes than previously thought... Now that the jobs and other data are picking up again, the market will start to re-price the number of hikes... Guess what, where's the inflation? Gold rises due to increasing inflation pressures, and this is why gold climbed to record highs of almost US$2000, the market was pricing in inflationary pressures due to the low interest rate environment after the 2008 crash... The 'money printing' didn't cycle into the economy, instead it cycled onto the banks balance sheets, therefore causing no inflation... Another reason why gold rallied to record highs up to close to $2000 was due to the debt ceiling 'crisis' and the downgrade of US debt... This quickly subsided along with all 'safe haven' money inflows of the past...

There is no inflation at the moment whilst the fed still wants to raise rates... Why hold gold? There may be some element of anxiety about what's happening in North Korea and perhaps Donald Trump, but the reality is the dow is at record highs and people want to make money, and they will sell gold to do it... Seems like Bitcoin is taking some money away from gold also, since it can be used as a store of value due to a currency crisis and as a safe haven but you can also buy things with it, unlike gold...

Yes I am heavily short, and you will see gold is about to embark on a severe downturn...