Gold Up Slightly Today Despite Equities Falling and Dollar Up

2 posts / 0 new
Last post
Lemonyellowschwin's picture
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
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!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments