Surprised — dollar hanging in there; metals down a bit

[TheBreeze]

I expected to see the dollar go down a lot today and metals to go up as investors pile into them as an inflationary hedge. However, it looks like all the metals went down and the dollar is about even:

http://www.cnbc.com/id/15839171/site/14081545/

I wonder if interest rate cuts don’t even matter. Perhaps Americans are so overextended that the only way they can get a loan (e.g., HELOC, mortgage, etc.) and thus more spending money is if they ‘state’ (i.e., lie about) their income. It wouldn’t surprise me.

[kewp]

Well, if the dollar finds a floor its all good to me.

[kewp]

Well, if the dollar finds a floor its all good to me.

[kewp]

Well, if the dollar finds a floor its all good to me.

[kewp]

Well, if the dollar finds a floor its all good to me.

[kewp]

Well, if the dollar finds a floor its all good to me.

[LA_Renter]

“it looks like all the metals went down and the dollar is about even:”

I think somebody pointed out on another thread that the classic deflationary argument only works if the currency can hold value while the economy is doing poorly. The Fed just opened the spigot and the dollar is holding….what does that say?? It is still very early but worth watching.

[Anonymous]

I understand the metals going down, as good positions need to be liquidated in order to meet margin calls.

The dollar surprised me too. It looks to be holding against western currencies…asian ones are another story. Check out what FXY (yen etf) has been doing lately.

[denverite]

IAU (ETF that tracks gold price) is near alltime-high. It is still in a strong uptrend.

[denverite]

IAU (ETF that tracks gold price) is near alltime-high. It is still in a strong uptrend.

[denverite]

IAU (ETF that tracks gold price) is near alltime-high. It is still in a strong uptrend.

[denverite]

IAU (ETF that tracks gold price) is near alltime-high. It is still in a strong uptrend.

[denverite]

IAU (ETF that tracks gold price) is near alltime-high. It is still in a strong uptrend.

[Anonymous]

I understand the metals going down, as good positions need to be liquidated in order to meet margin calls.

The dollar surprised me too. It looks to be holding against western currencies…asian ones are another story. Check out what FXY (yen etf) has been doing lately.

[Anonymous]

I understand the metals going down, as good positions need to be liquidated in order to meet margin calls.

The dollar surprised me too. It looks to be holding against western currencies…asian ones are another story. Check out what FXY (yen etf) has been doing lately.

[Anonymous]

I understand the metals going down, as good positions need to be liquidated in order to meet margin calls.

The dollar surprised me too. It looks to be holding against western currencies…asian ones are another story. Check out what FXY (yen etf) has been doing lately.

[Anonymous]

I understand the metals going down, as good positions need to be liquidated in order to meet margin calls.

The dollar surprised me too. It looks to be holding against western currencies…asian ones are another story. Check out what FXY (yen etf) has been doing lately.

[LA_Renter]

“it looks like all the metals went down and the dollar is about even:”

I think somebody pointed out on another thread that the classic deflationary argument only works if the currency can hold value while the economy is doing poorly. The Fed just opened the spigot and the dollar is holding….what does that say?? It is still very early but worth watching.

[LA_Renter]

“it looks like all the metals went down and the dollar is about even:”

I think somebody pointed out on another thread that the classic deflationary argument only works if the currency can hold value while the economy is doing poorly. The Fed just opened the spigot and the dollar is holding….what does that say?? It is still very early but worth watching.

[LA_Renter]

“it looks like all the metals went down and the dollar is about even:”

I think somebody pointed out on another thread that the classic deflationary argument only works if the currency can hold value while the economy is doing poorly. The Fed just opened the spigot and the dollar is holding….what does that say?? It is still very early but worth watching.

[LA_Renter]

“it looks like all the metals went down and the dollar is about even:”

I think somebody pointed out on another thread that the classic deflationary argument only works if the currency can hold value while the economy is doing poorly. The Fed just opened the spigot and the dollar is holding….what does that say?? It is still very early but worth watching.

[Running Bear]

I don’t think this is a mystery. When the world economy is strong and fear is low, the dollar will drop when the fed is cutting rates or increasing the money/credit supply. That is why the dollar fell over 35% against the Euro from 2001. However, when there is fear in the world markets and people are worried about financial stability the dollar isn’t going to get punished. It is still the reserve currency and most debts are paid for in dollars as well as commodities (oil) around the world. If the dollar wasn’t the reserve currency it would be getting crushed, but since it still is, in times of fear and uncertainty, people will run to it. I’m not a currency expert but have tried to understand why and if the dollar would hold up in a world recession type scenario and this is what I believe.

My2Cents

[Running Bear]

I don’t think this is a mystery. When the world economy is strong and fear is low, the dollar will drop when the fed is cutting rates or increasing the money/credit supply. That is why the dollar fell over 35% against the Euro from 2001. However, when there is fear in the world markets and people are worried about financial stability the dollar isn’t going to get punished. It is still the reserve currency and most debts are paid for in dollars as well as commodities (oil) around the world. If the dollar wasn’t the reserve currency it would be getting crushed, but since it still is, in times of fear and uncertainty, people will run to it. I’m not a currency expert but have tried to understand why and if the dollar would hold up in a world recession type scenario and this is what I believe.

My2Cents

[Running Bear]

I don’t think this is a mystery. When the world economy is strong and fear is low, the dollar will drop when the fed is cutting rates or increasing the money/credit supply. That is why the dollar fell over 35% against the Euro from 2001. However, when there is fear in the world markets and people are worried about financial stability the dollar isn’t going to get punished. It is still the reserve currency and most debts are paid for in dollars as well as commodities (oil) around the world. If the dollar wasn’t the reserve currency it would be getting crushed, but since it still is, in times of fear and uncertainty, people will run to it. I’m not a currency expert but have tried to understand why and if the dollar would hold up in a world recession type scenario and this is what I believe.

My2Cents

[Running Bear]

I don’t think this is a mystery. When the world economy is strong and fear is low, the dollar will drop when the fed is cutting rates or increasing the money/credit supply. That is why the dollar fell over 35% against the Euro from 2001. However, when there is fear in the world markets and people are worried about financial stability the dollar isn’t going to get punished. It is still the reserve currency and most debts are paid for in dollars as well as commodities (oil) around the world. If the dollar wasn’t the reserve currency it would be getting crushed, but since it still is, in times of fear and uncertainty, people will run to it. I’m not a currency expert but have tried to understand why and if the dollar would hold up in a world recession type scenario and this is what I believe.

My2Cents

[Running Bear]

I don’t think this is a mystery. When the world economy is strong and fear is low, the dollar will drop when the fed is cutting rates or increasing the money/credit supply. That is why the dollar fell over 35% against the Euro from 2001. However, when there is fear in the world markets and people are worried about financial stability the dollar isn’t going to get punished. It is still the reserve currency and most debts are paid for in dollars as well as commodities (oil) around the world. If the dollar wasn’t the reserve currency it would be getting crushed, but since it still is, in times of fear and uncertainty, people will run to it. I’m not a currency expert but have tried to understand why and if the dollar would hold up in a world recession type scenario and this is what I believe.

My2Cents

[asragov]

If (a big if) you are a believer in deflation, then the dollar should begin a long-term rise. The basic idea is that assets will fall so much in price that a dollar will go further (just not as many people will have any).

[asragov]

If (a big if) you are a believer in deflation, then the dollar should begin a long-term rise. The basic idea is that assets will fall so much in price that a dollar will go further (just not as many people will have any).

[asragov]

If (a big if) you are a believer in deflation, then the dollar should begin a long-term rise. The basic idea is that assets will fall so much in price that a dollar will go further (just not as many people will have any).

[asragov]

If (a big if) you are a believer in deflation, then the dollar should begin a long-term rise. The basic idea is that assets will fall so much in price that a dollar will go further (just not as many people will have any).

[asragov]

If (a big if) you are a believer in deflation, then the dollar should begin a long-term rise. The basic idea is that assets will fall so much in price that a dollar will go further (just not as many people will have any).

[Chris Scoreboard Johnston]

If you look at the recent rise in the price of gold and the corresponding rise in open interest, it is notable that most of that rise in open interest is comprised of speculators, with the commercials sharply reducing their long positions. This is not what bull markets are made of, it is only a matter of time before this market heads down. These momentum moves are tough to time in terms of fading them because they are completely emotion driven by non-professionals. However, when the large players are fading a move, the music will stop eventually, and probably very sharply.

For those having long term positions, or those looking to establish them, I would not be a buyer here, you will get a decline to do so.

[Chris Scoreboard Johnston]

If you look at the recent rise in the price of gold and the corresponding rise in open interest, it is notable that most of that rise in open interest is comprised of speculators, with the commercials sharply reducing their long positions. This is not what bull markets are made of, it is only a matter of time before this market heads down. These momentum moves are tough to time in terms of fading them because they are completely emotion driven by non-professionals. However, when the large players are fading a move, the music will stop eventually, and probably very sharply.

For those having long term positions, or those looking to establish them, I would not be a buyer here, you will get a decline to do so.

[Chris Scoreboard Johnston]

If you look at the recent rise in the price of gold and the corresponding rise in open interest, it is notable that most of that rise in open interest is comprised of speculators, with the commercials sharply reducing their long positions. This is not what bull markets are made of, it is only a matter of time before this market heads down. These momentum moves are tough to time in terms of fading them because they are completely emotion driven by non-professionals. However, when the large players are fading a move, the music will stop eventually, and probably very sharply.

For those having long term positions, or those looking to establish them, I would not be a buyer here, you will get a decline to do so.

[Chris Scoreboard Johnston]

If you look at the recent rise in the price of gold and the corresponding rise in open interest, it is notable that most of that rise in open interest is comprised of speculators, with the commercials sharply reducing their long positions. This is not what bull markets are made of, it is only a matter of time before this market heads down. These momentum moves are tough to time in terms of fading them because they are completely emotion driven by non-professionals. However, when the large players are fading a move, the music will stop eventually, and probably very sharply.

For those having long term positions, or those looking to establish them, I would not be a buyer here, you will get a decline to do so.

[Chris Scoreboard Johnston]

If you look at the recent rise in the price of gold and the corresponding rise in open interest, it is notable that most of that rise in open interest is comprised of speculators, with the commercials sharply reducing their long positions. This is not what bull markets are made of, it is only a matter of time before this market heads down. These momentum moves are tough to time in terms of fading them because they are completely emotion driven by non-professionals. However, when the large players are fading a move, the music will stop eventually, and probably very sharply.

For those having long term positions, or those looking to establish them, I would not be a buyer here, you will get a decline to do so.

[Author]

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