Loading ...Funny that we consider rates high here, but they definitely are when you have a world economy that is built for 0% rates. This dollar rally will end at some point, maybe it’s ending today. If it wasn’t pegged to the other fiat currencies it would fall through the floor. So, you’re right in the sense of “where would gold be if rates weren’t so high?”
The New Home Sales report came out today and was a huge miss 587K vs. 727K estimates. Ugly
You can drive another stake through the heart of the economy with those numbers. Add to that and Hegseth at Defense asked for another $200 Billion to prosecute the Iran war. Doesn’t sound like they’re finished yet. We can’t win a war strictly with air power. They know this, so what’s the plan? I don’t even think they have a plan, but if it’s to send in ground troops, it will be a meat grinder like Ukraine. We are not yet prepared for modern drone warfare as far as I can tell. Hopefully cooler heads will prevail and they’ll claim victory and say they wiped out nuke and missile capabilities and walk away.
Regardless, the dollar is on its last decade IMHO. When it finally crashes and burns, I just hope we aren’t fighting Chinese troops on our soil.
Hopefully maddog is right and we get a little strength into the close. This was a re-test of the low in silver to the dollar, be nice if this is all she wrote, but I have my doubts, they always take this stuff lower than anyone thinks is possible.