Gold and US reserve currency status

Gold's Daily Chart Update.

Its possible that we see both gold and the dollar rise. It happens at times, think the 1980s. The biggest thing is that if we are starting to see the US wobble a bit, the rest of the world will feel it. There will be a run to US Treasury markets, which we already saw a bit of on Friday.

Retail traders don't think about the problems massive funds have as far as getting to safety. If you have to move billions of dollars, there are only so many places you can get in and out of, and the biggest and more liquid market? US Treasuries. What do you have to use to buy those? US dollars.

This is why the USD rises in times of trouble, even when it happens in America, because that trouble spreads out. Initially, the US markets get hit, but when the real fear comes back - other currencies get whacked. It's always the timing that is the problem.

Gold has been rising for some time now regardless, and betting on it going higher is a simple assumption, and one that makes sense. USD reserves still account for something like 55% of central bank balance sheets, and then there is that "Eurodollar system" thing. *If you are in the FX markets, you need to understand this*

People talk about the changing of the world's reserve currency all the time. They don't really understand what it would take. Generally speaking, its always been around massive wars. After all, if you are China, you are issuing debt in what currency? Yes, dollar. If you are Finland and bought billions of Chinese debt, you expect to be repaid in the currency that you loaned to them. While there is an exchange mechanism, a sudden rush away from the USD would essentially be forgiving debt around the world, and that's not happening without people dying.

So what will happen to US dollar on Monday?

That's a cool one

Exactly clock. I am forever grateful that I can shift a large portion of my relatively small portfolio very quickly into cash. Or anything, really. Considering that I don't need to accumulate/distribute, although benefit from doing so, I also have the luxury of being able to switch into the plethora of opportunities that present themselves in such times.

USD still looks weak nonetheless. Gold is well... gold

Still trading...

Thanks for sharing this insightful information @clockwork71

nice trader for sharing information thanks

That's a cool one

America has a lot of debt, borrowing to pay debt. It's about to go bankrupt.