More than 90% of the time, gold trades inversely to the USD, which makes perfect sense: because gold is priced by the dollar, when the almighty buck heads lower, it takes more units of currency to buy one ounce of pure gold.
The S&P 500 is tied for its 2nd best performance since 1990. Only 1991’s January/February trading action has been better.
It’s funny how things work. Yesterday, FED chairman, Jerome Powell, officially stated that the economy is slowing, just three months after he claimed it was healthy, strong, robust, and any other word that his $2,000/hr statement writer manages to cook-up.
This is the closest we’ve come to a pivotal moment for the global economy since 2009. Today is the pinnacle of the economic experiment, led by the Federal Reserve and followed by all central banks, globally.
In life, as with investing, cause and effect aren’t instantaneous, but inevitable. The currency crisis doesn’t have to happen today, but it is, nonetheless, imminent.