The U.S. prestige good status under the Obama administration is in distress and savvy delegates are fleeing the “Greenback”.
Several fund managing advisors and economists advisors are already cautioning to move money out of the U.S. Dollar. They suggested to move dollar accounts in the U.S. as soon as possible citing the express belief that there could be close similarities to what is presently plaguing the United States. A number of investors are already similarly pulling out their money out of the Sterling.
The de-Americanisation that a number of Gulf States and Chinese are implicating behind the scene that the US Dollar Index (DXY) reflected the real results as shown earlier this week. This was basically a good opportunity between and the next dispute regarding the US debt ceiling altercation where there is the alternative safe haven whether it be gold, euro or the Chinese currency. Although the Chinese did not complain, there were still uptight of the present turn of events.
Prices of gold surge over $30 oz during the last trade held last week. Obviously, someone was putting more money into the metal industry rather than of the dollar, and the world believes that the U.S. has generally, lost control over its economy.
The only feasible thing that the US is in control is a very liquid market. A common criticism of this single brightest spot is that the Federal Reserve is purchasing every bond they can get their hands of right now. In the strictness of it all, U.S. right now is doing its best to regain normalcy in its economy despite the growing problem that the U.S. government is spending too much money which means that it needs to borrow more money on the global market and in no way has a solid and defined way to rate its deficits in a sustainable method.
Gold is perhaps the proper vehicle to countenance this action and many remain neutral with regards to their present position until the Bullish trend is ultimately conformed. Gold was able to break through the parallel downward sloping trend and may probably suggest that the downward trend in the previous months is still vaguely conclusive.
There is resistance at the 1340-1350 level that has yet to be broken prior to confirming the next more North in Gold. A break will open the manner towards the 1430-1440 which converges the 2000day MA and August high records. If gold makes a strong impulse move, we should expect that silver will follow and consequently the U.S. Dollar will further fall down the drain.