This type of strong dollar NOT Gold Bearish - 3 Weeks After Fat Euro Lady Sings Expect Dollar Attack

Jim Sinclair

There is a certain extremely important market reality that must be kept in mind as you listen to all the bearish gold predictions.   What is good for the dollar is bad for gold.   This is wrong because it depend what dollar related factors are giving a positive dollar price action.
If the good for the dollar was strong US economic activity, sound balance sheets in the US financial industry and a US consumer ready and credit able to expand, the answer would be yes if these activities were for the long term   That strong dollar would not be good for gold.   However there is only one dollar positive out there. That is the largest currency market on the planet is the dollar vs. euro market in which the so called vigilantes (International Investment Banks) are shorting the euro to infinity. That downward pressure on the euro creates a mirror image of dollar strength but give that strength no greater legs than the euro problem posses.
Within three weeks from whatever date is the final act in the euro soap opera the US dollar will be the primary focus of the vigilantes via US dollar and long bonds.

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