EURUSD @ $1.07
- Gold @ A New Pick.
- US Dollar Is Towering.
- ECB Decision.
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Looking at the current headlines these are the top 3 notes I wrote down
to identify the current state of this currency pair.
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Gold prices are rising right now and what does this mean for the current economy?
If you buy gold and decide to invest in it, the first thing you will
use most likely is the dollar
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This gold rally is being backed by the rising in gold prices because the US Dollar has the world's largest gold deposit in the Central Bank
This is why the US dollar rises in strength
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When The Gold Rally Begins.
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ECB has made decisions on its borrowing rates based on the overpowering strength of the
dollar
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This means that the central bank in Europe had decided to save the US dollar Treasury
instead of its own local currency bonds
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So they are selling their currency at a lower price to buy US dollars instead
this means the Gold price favours the US Dollar among all other currencies.
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On the flip side China has changed its banking policy to allow the acquisition of gold this has inspired Zimbabwe to announce a gold-backed currency as well
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I never thought I would witness a gold rally.
Honestly witnessing a gold rally while being in the financial industry is the most
exciting thing I have ever experienced
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Sadly this means local governments and economies that don't know how to take advantage of this Gold rally are going to be left behind for good.
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To learn more rocket boost this content.
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