Following up from my previous video on price of Gold, I show an startling inverse correlation between Gold and strength of the US Dollar (DXY).
Before February 2020, Dollar strength basically followed Gold. But after February - the world changed. Keep in mind this was when COVID struck, and the FED flooded the economy with basically 'air money'.
COVID popped the baloon that was expanded recklessly for about 11 years. The FED then put 'sellotape' on the balloond and did a fair job of reinflating it, with more 'air' of course.
The effect of panic-striken money printing was to cause a loss of strength in the US Dollar against other currencies. Other factors like trade and price of Oil also account for Dollar strength in part.
So post-COVID,around April to end of May 2020, the Dollar took on a decompensation pattern and crashed. It could get even worse, as today the FED re-affirmed it's commitment to doing 'whatever it takes'.
This is probably not good news for the Dollar, but it's good news for those seeking upside on Gold.
Disclaimers: This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, or miss opportunity, kindly sue yourself.
Before February 2020, Dollar strength basically followed Gold. But after February - the world changed. Keep in mind this was when COVID struck, and the FED flooded the economy with basically 'air money'.
COVID popped the baloon that was expanded recklessly for about 11 years. The FED then put 'sellotape' on the balloond and did a fair job of reinflating it, with more 'air' of course.
The effect of panic-striken money printing was to cause a loss of strength in the US Dollar against other currencies. Other factors like trade and price of Oil also account for Dollar strength in part.
So post-COVID,around April to end of May 2020, the Dollar took on a decompensation pattern and crashed. It could get even worse, as today the FED re-affirmed it's commitment to doing 'whatever it takes'.
This is probably not good news for the Dollar, but it's good news for those seeking upside on Gold.
Disclaimers: This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, or miss opportunity, kindly sue yourself.
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus youtu.be/NjTdvALChwk ]
