Loading ...Notice that the big legs lower in gold this week have occurred during the Asia and European session.
Which got us thinking…
Is gold the canary in the coalmine of a dollar funding crisis?
As we warned earlier in the week, we are seeing strains begin to emerge in the global financial system’s plumbing.
UBS traders noted sizable moves in JPYUSD and CHFUSD X-ccy basis suggesting rising demand for dollars..
If there’s a dollar shortage, people will sell gold first.
And in case you were wondering, this is why Asia could be where the funding crisis is emerging…