Bigworld, Yes, good to see gold rebounding, but it appears to be moving up because the US dollar is tanking (plus worries over N. Korea). With the Fed aggressively tightening, one would expect the dollar to be firm and/or rising.
So what's going on? One theory is that the market isn't buying into the idea that the tax cuts will boost the weak economy, and the market is looking ahead to when the Fed has to back off on rate hikes and QT.
That makes some sense, but the timing of the IMF's actions (that began on Jan 1st according to Rickards) which allows countries to convert their dollar holdings into SDRs is a very ominous development that could really tank the dollar. The Fed is already backing away from their buying of Treasury bonds, and foreign countries won't be showing up either, and can now start dumping in earnest and shift out of dollars into SDRs. This has disaster written all over it.
The dollar chart is precarious, key support (90-91) isn't likely to hold, and it's a long way down. The article you posted predicts 79 on the dollar index by year end 2018. Combined with the looming disaster with N. Korea, things could really fall apart for the US in 2018.
