Gold could not seem to rally today, although silver caught a little upside action, and stocks in general were going crazy to the upside, particularly in the futures after the bell thanks to the tech giants Aphabet (Google) and Amazon.
Although it may seem counter-intuitive that stocks were rallying hard on expectations of ECB stimulus and gold was not, in fact it makes sense because the Euro currency was hit rather hard by this, and King Dollar is essentially the reserve of the euro.
And I am sure you remember what a stronger dollar does to the price of gold, expressed in dollars.
The retracement scenario is still very active.
Yes, in the short run a stronger dollar is bad for the ‘real US economy.’
And in the short term, they do not care. Time to cash in and make some more money off paper asset bubbles.
This is what modern finance does.
Have a pleasant evening.
