No-one has given an explanation as to why gold is going lower while the US dollar is rising?
Sure we could point at the drop in oil as a contributor to the dollar increase. But I believe it's the reverse...
What actually instigated the increase in the US Currency and what's lowering the gold and oil?
All three play a factor... my thoughts on where it started and why the markets are the way they are now.
Jul 10, 2008
The Bank of Israel will increase the rate of purchasing US currency to $100 million per day beginning Thursday, the bank announced.
The US dollar was being traded at NIS 3.22 on Thursday afternoon, a rise of one agora over the morning hours' NIS 3.21 exchange rate.
The bank noted that the plan to increase the US currency purchases was part of a plan to increase foreign currency reserves to $35-40 billion.
Please visit the link provided for the complete story.
Israel was going to buy I think 80mil starting next
year. But changed their minds and decided to buy now.
Is this their way of paying the US to help them attack Iran? For another post/topic.
I believe Israel is buying US dollars with gold
. This in turn will devalue gold as it is being depreciated
due to being purchased with
With the US currency now being backed with legit
gold, this in turn will strengthen the US dollar on Oil, in turn lowering the value of Oil.
The question is .. how long will Israel keep buying US currency and when will Iran be attacked. Two factors for you to look into so as to make
investments which may increase ones bottom line.
Edited to include the date the article was written.. as it plays a major factor into how long Israel has been buying US currency to-date.. That's
quite the buying power I would say...
[edit on 10-9-2008 by Willbert]