Global Central Banks Pushing Gold
Gold is rallying in all fiat currencies and has made a new all-time high in both euros and dollars today.
Perhaps that dollar rally appears after the dollar index makes a marginal new low shortly, or perhaps the euro reverses even sooner, simply based on the market's anticipation of the ECB easing and the dollar index rallies from its current level? I have no idea and as a gold bull, I honestly don't care, because gold is rallying all forms of currency confetti at the moment.
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All I do know is that global money printing by central banks is bullish for gold, and gold seems to think so too because it's rallying in all fiat currencies and has made a new all-time high in both euros and dollars today, which you can see in the charts below.
Click to enlarge.
Click to enlarge
I know a lot of people are expecting gold to go down when the dollar index finally rallies (and I agree that the buck is overdue for some sort of bear market rally), but the surprise I suspect is going to be that gold rallies with the dollar index, just as it has done since December, when the dollar index hit its low. And if shorts have been entering the gold market based on this theory, which I suspect they have recently, the ensuing short squeeze could be breathtaking.
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