The big lie has been exposed as gold and the US dollar continue to rally together. In fact, today the US dollar had a significant breakout as gold futures punched decisively above $2,700.
The Big Lie
November 23 (King World News) – Eric King: “I have stayed bullish the US dollar the entire time since the index broke the 102.37 area, and then the US Dollar Index punched all the way up to 114.5. Almost everybody in the gold space said once we started going back down that the dollar was going to go into the toilet. But those long term charts have stayed bullish. And here we are breaking out today on the US Dollar Index. The index hit 108+ today before pulling back. The dollar is in a clearly overbought situation (short-term). We are up 8 straight points on the Dollar Index in a short period of time.
I know you’ve looked at that chart (of the US Dollar Index breakout) — there is nothing but air up to 112-114.5. Could we correct first? I don’t know what they are going to do with the dollar short-term, but despite being dollar bullish I kept saying all year long, ‘I don’t care what the US dollar does, these are all garbage fiat currencies that have no intrinsic value whatsoever.’ And here we are with the US dollar rallying and gold is rallying with it. That has been a pattern that has gone on for quite some time. There’s no ‘Strong dollar and gold goes down.’ That’s all a lie, it’s always been a lie, otherwise how do you go from $250 gold up to $2,700-$2,800 gold?”
James Turk: “There were really a lot of good points that you were making there, Eric, and I agree with you. It has been quite something watching the dollar going up. But you do have these periods of time where gold and the dollar trade together. The other big lie that we have seen over the past couple of years is ‘As interest rates go up that’s bearish for gold and silver.’ That’s complete nonsense. All you have to do is look at the 1970s and see what happened when interest rates went up — both gold and silver continued to go up. Now over the past year or two as interest rates have been going up, gold has been going straight up too. What people have to do now is…to continue listening to James Turk discuss what to expect next for gold, silver and the mining and exploration space CLICK HERE OR ON THE IMAGE BELOW.
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