Strong Dollar Flattens Gold

[Thepricebreaker]

Benchmark gold futures were recently down $31 at $914.10 an ounce in recent action on the Comex division of the New York Mercantile Exchange. The move comes on the back of a nearly $60 loss Wednesday and is being driven in part by hedge funds liquidating their holdings in reaction to the poor performance of other asset classes.

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http://www.thestreet.com/story/10408779/1/strong-dollar-flattens-gold.html



....but but but I though the dollar was dead??

[BleedingHeartPatriot]

1. Backing the right horse, then?

:rofl:

Welcome to DU?

[Thepricebreaker]

2. Welcome to DU because I like a strong dollar?? your crack pipe not big enough?? ... 666! Post #

[orleans]

4. HEY! no "fuck yous" allowed. read the rules.

"Do not hurl insults at other individual members of this message board. Do not tell someone, "shut up," "screw you," "fuck off," "in your face," or some other insult. "

http://www.democraticunderground.com/forums/rules_detailed.html

[Thepricebreaker]

5. I took it out as fast as I posed it ;)

[Warpy]

3. The dollar has come up 0.03 against the Euro

If a $1 to 1.542 Euros is a strong dollar, I've got an oceanside home to sell you in northern New Mexico. You can trust me, you don't have to see it, would I lie to you?

[Double T]

6. Agreed. wall street and bushco propaganda.

[Thepricebreaker]

9. Complete BS.. Gold is down over 100 bucks in a week...

[Art_from_Ark]

10. And the dollar is still worth less than 100 yen--

close to a 12-year low. And it's almost at parity with the Swiss franc and the Canadian dollar.

If the dollar's "strong", then I'm the Pope.

Or are they referring to the Canadian/Australian/Singapore/Hong Kong dollar?

[Thepricebreaker]

11. Its about gold NOT yen..... n/t

[Art_from_Ark]

13. It's about a "strong" dollar, which the dollar (US dollar, at least) isn't

"The move... is being driven in part by hedge funds liquidating their holdings in reaction to the poor performance of other asset classes."

The dollar is being "strengthened" in part because hedge funds have been selling gold to cover their poorly performing asse(t)s.

[El Pinko]

12. It's clearly not "strong", but I'm at least hoping for "bottoming".

Barring any more financial catastrophes or fed rate cuts in the next few weeks, the dollar may stage a slight comeback vs the yen & euro.

I'm personally hoping for international intervention to strengthen the dollar further.


Although the dollar will be weak in the mid-term (6-9 mos.) It may strengthen significantly next year as US recession spreads to other countries.

[Art_from_Ark]

14. The last time the dollar was this low against the yen

the Bank of Japan started buying up dollars like crazy.

Of course, the rate of return on the BoJ's dollar investments was higher then.

[El Pinko]

15. Japan is less dependent on exports to the US now - they sell to China, Asia more now...

...but I suspect that BoJ would start buying dollars and selling yen if the dollar falls to about 90 yen (assuming they've finally appointed a permanent BoJ head at that time).

[Art_from_Ark]

16. Of course, the vacancy at BoJ

(the first time that's happened since the war) might have something to do with why Japan hasn't intervened. I think the threshold of pain would be before 90 yen. But if they let the dollar fall that far, then I'm stocking up on dollars :)

[NuttyFluffers]

21. aha! the Dollar DEMOLISHES difference against the Euro!

"Enjoy your EXTRA BIG ASS FRIES!"

"I can't believe you like money too. We should hang out."

-Idiocracy

[Captain Angry]

7. Investment flows to the greatest returns.

When the Fed does something that will push the markets up, money will flow out of commodities which have been inflated into the stocks that are deflated. When something economic happens that will push the markets down, money will take the profits from the last run up and move into something new. Sometimes commodities, sometimes real estate, sometimes T-Bills, etc.

Wherever the return is highest or the loss is least, that's where the money's headed. That's why watching the indexes on a daily basis is just bad for your blood pressure. You can't find patterns where they don't exist.

Nothing fundamental has been done to shore up the dollar. It has fallen hard, which is creating temporary bumps in the value of the dollar as foreign companies find it less expensive to do business here in the States, as well as foreign tourists buy our dollars to vacation here while it's relatively cheap.

But nothing has been spurred by our government to create the jobs that will produce a long term stable economy. And that's why any moves in the short term for the dollar are almost certainly speculation by some that we've hit a bottom. People will ride it up from this point, since at some point, the USA will figure it out and get back on track.

[marmar]

8. "Strong" dollar?

I think that's a bit of an exaggeration.....

[barb162]

19. It's not dead on the floor yet. Maybe tomorrow.

[gravity]

17. Gold was probably overvalued

While it looks like the Fed actions are restoring confidence in the dollar and the US economy, it's too soon to say its going to turn around

[ConcernedCanuk]

18. USA dollar on Viagra - still limp.

.
.
.

Methinks the World is tired of the USA dominance

Payback is a Bit*h.

[TheWatcher]

20. Strong Dollar?

So you think the reason Gold fell $100.00 this week is because of the Strong Dollar?

TheStreet.Com?

Boy, you have A LOT to learn, Young Jedi.

:rofl:

Try Again.

[Trailrider1951]

22. Strong dollar, my foot

When I was a little girl, these two were equals:

http://upload.wikimedia.org/wikipedia/commons/thumb/7/7b/United_States_one_dollar_bill,_obverse.jpg/800px-United_States_one_dollar_bill,_obverse.jpg

and




When Stupid was selected, these two were equal:




and




Today these are approximately equal:



and




Any questions?

[mdmc]

23. thanks for the pics

:kick: