Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

I assume with gold up as much as it is today that you will partying like a rock star tonight. Congrats.

Interesting that gold is up big the same time the dollar hits new highs. What happened to the divergence they normally followed? Small moves contrary to the divergence pattern are understandable, but one this big must be fairly significant. What do you think it portends?
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Hi sailor...... got gum? <g> (I've always wanted to say that!)

Nah! I get tired of partying like a rock star night after night! I may just sit on the floor and throw money into the air. <g>

Fwiw, I just had a brief conversation with GT on the PoG/USD relationship.

If I may:

>>>Hey Dan. I kind of expect the USD to go higher still, but what kind of a melt-up are we going to see in Gold if the USD begins correcting, and re-tests its lows.<<<
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I wonder about that myself, GT.... who is to say that the same strong inverse relationship will reappear any time soon, if at all.....

Like you, I know how it's supposed to work, but the way the PoG has followed the USD to the upside and pretty much ignored staying in step on the dollar's recent declines makes for considerable head scratching in the circles I travel in. <gg>

But being a major component of my four figure gold scenario, I'm guessing that the PoG will find 'old habits' hard to break and will follow the USD's eventual fall from grace by jumping for (a) joy or (b) higher and higher price levels.

At the very least, it is something to look forward to finding out about in real time.....

#msg-8520150

In other words, I don't really know, but I'm hoping it goes the way I have it scripted. <vbg>