The perfectly inverse trade of dollar vs gold continues to reach new extremes. Earlier today, spot gold just hit a fresh all time high of $1,317, once again proving that all that inflection point chasers really have no idea what they are talking about, since gold is not trading based on some regression channel, but continues to be the only way to hedge central bank profligacy. It is stunning how many experts still don't get this. As long as daily news of currency intervention bombard Bloomberg terminals around the world, this trend won't end. And neither will the pain for the dollar, which as the attached heatmaps demonstrate has received another fresh round of pain, with the EURUSD hitting 1.3765, as Europe is once again caught in a quandary of how to best punish it own currency without setting off a fresh banking crisis (the whole rock and hard place thing). Yet someone who will certainly be forced to intervene soon or else risk loosing all control is the BOJ, whose currency is now back to pre-intervention levels. Total tally: global central banks have spent tens of billions to keep the dollar low, and have failed, while all Bernanke has had to do is threaten to print another trillion and succeeded.
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