GUDD = Gold up, dollar down.
“What the hell happened?” seemed to be the question of the day Wednesday, October 8th, 2014. Gold moved up nearly $20 from it’s low to close at 1221.9 and is currently at 1226.6 as I type this.
The US Dollar Index made a low of 85.29 and currently is at 85.35, well off it’s high of 86.87 created just 5 days ago.
So, what happened. Pretty simple. From the FOMC minutes:
Over the intermeeting period, the foreign exchange value of the dollar had appreciated, particularly against the euro, the yen, and the pound sterling. Some participants expressed concern that the persistent shortfall of economic growth and inflation in the euro area could lead to a further appreciation of the dollar and have adverse effects on the U.S. external sector.
Will the spaghetti stick to the wall ? I don’t think it willÂ but it will be interesting to watch 🙂