FLASH GAGE – Gold & Emerging Markets

Gold & Emerging Markets

This is very difficult to confirm, but the talk on Wall Street by some Gold traders is that this sell off in the price of Gold is rumored to be emerging-market central bank selling.

I guess it makes sense, as many emerging countries’ currencies have been losing ground versus the U.S. Dollar and most of their debt is to be repaid in U.S. Dollars not their local currencies.

I expect the worst is over, for the time being as the U.S. Dollar index is off its intraday highs.

Enjoy the rest of your day.

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