Gold Up Slightly Today Despite Equities Falling and Dollar Up

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Lemonyellowschwin's picture
Lemonyellowschwin
Status: Platinum Member (Offline)
Joined: Apr 22 2008
Posts: 561
Gold Up Slightly Today Despite Equities Falling and Dollar Up

I have been wondering what gold will do in the event of significant weakness in equities.  During last fall's stock market crash, there was a significant decline in gold and huge dollar strength.

Today we see gold showing some strength in the face of a 100+ point drop in the stock market and a bit of dollar strength.  I wonder if gold will assume a role in the "flight to safety" if indeed there is a flight to safety in the face of stock market weakness.

 

mpelchat's picture
mpelchat
Status: Silver Member (Offline)
Joined: Sep 10 2008
Posts: 214
Re: Gold Up Slightly Today Despite Equities Falling and ...

Hello Lemon,

Market indicators are so screwed up with manipulation from computers and governments that I really think there there is only one set of rules we can go by:

The Five Horeman

The First Horseman: New credit growth falls below interest payments  = Done

The Second Horseman: The Fed monetizes debt  = Done and getting worse

The Third Horseman: Government deficit spending exceeds 10% of GDP =  Done 

The Fourth Horseman: The dollar goes down, while interest rates go up = potentially on the way

The Fifth (and final) Horseman: US debt becomes denominated in foreign currencies = Dollar loses reserve currency status, this is on the way as well.

Hope this helps!

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