Monday, April 6, 2015
US dollar shows its hand and now gold goes to da moon Alice
If it made sense since December for Wall Street Whitey to be short gold to play the long dollar trade, as of today it makes sense for Whitey to go long gold so he can be short USD.
The problem, as I've been saying for months now, is:
the rest of the world ex-US has been going longer and longer gold all this time, as the GLD:UDN chart shows.
The jobs data was bullshit, but I'm wondering: even if it's bullshit that can be fixed in a month, it might still have been a sufficient jolt to close the window on the USD long trade for a while.
A new high on GLD:UDN means say hello to >$1300 gold. Probably for good this time.
Partially because nobody out there thinks that the worst is over for gold. They're all saying "well, we're still bottoming."