Gold took a major tumble Friday afternoon, but honestly is anyone surprised? If so they shouldn't be. Many of the gold naysayers are proclaiming this was do to the increase of the dollar as it a hit a five week high. Combined with speculation that the Fed Chair is hinting at an interest rate increase and investors, as they say, have suddenly taken a liking to the dollar.
Don't count on it. This is another caffeine jolt for the dollar as the underlying factors remain for the greenback to struggle. Those that react so strongly to the Fed Chair and others in D.C. are the ones screaming for a bailout every few years. Honestly, ignore them for the most part and look around. There are no signs the debt is going down, the economy remains in neutral at best, the current administration is determined to print and spend and China is still questioning the value of the dollar.
Helicopter Bernie might offer a few quick words that bring a week long surge, but the dollars' tumble is not going away anytime soon.
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