Sunday, June 2, 2013

Here is a mystery?

Does anyone know the basis of this relationship:
strong U.S. $ = weak gold prices?

Without the quantative easings by the U.S. Fed, the world was already awash with trillions upon trillions of U.S $!
With quantative easing the world was awash with even more trillions of U.S. dollars.
For this, various nations now have bilateral arrangements in which they trade against each other with their respective national currencies. In this way they bypass using the world's reserve currency - the U.S. dollar.
So, by the evidence cited here, how on earth does this relationship come to be:
strong U.S. $ = weak gold prices.

Anyone?

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