Gold Prices: Dropping in the Face of Strong Dollar
Yesterday we talked about how economics seemed to be going in reverse following Weds’ Fed interest rate announcement. Must be someone important (and rich!) is reading these posts, as yesterday, the dollar and gold prices both responded the way you’d expect them to following the interest rate hike.
The dollar came out slow but charged up after lunch time – just about when important people would have read that post. Haha! We’re mostly kidding, but it does seem interesting that this market seems to have a 1 or 2 day delay before it responds “appropriately” to news.
That it responds appropriately at all is a bit amazing all by itself; for much of this bull market even bad news would cause stocks to run up, such as for Tesla’s endless misses. Nowadays there seems to be a bit of sanity creeping in, which usually means the bull market in stocks will extend for a while yet.
That’s bad news for gold enthusiasts, as it foretends a flat near term for our favorite yellow metal. But we’ll happily take a bit more summertime prosperity and cheer while we wait for the Italian shoe to drop. Italy is the topic of today’s featured article, because we suspect it will become very important in the near future.