Sunday, February 14, 2016

Last Week's Gold Spike

Gold climbed 5.5 per cent to $1,238.48 an ounce last week — for its biggest weekly gain since October 2011.

At the same time,  the US dollar — as measured by the DXY dollar index, a gauge of the currency against its trading partners, fell 1 per cent.

I consider both moves to be significant and in line with developing long term trends.

The coming dollar crash on foreign  exchange markets, by itself, is going to make Paul Krugman's current concern about deflation look absurd.


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