Sunday, July 31, 2016

Dollar And Gold Hint Inflation Out Of The Cage

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*The Fed term "behind the curve" is good for gold.
*Investors showed their cards when understanding the dollar and gold's moves in relation to the Fed and GDP.
*Inflation is picking up and the Fed can't do anything about it. That's why inflation gets our Out Of The Cage rating.
*We've been expecting inflation for a couple of months and this will be an important week of data.

We love gold. We discovered a new gold bug song too at the end of the report.
The dollar had a mini collapse after the Fed meeting Wednesday. The main reason that we think so is that investors worry the Fed could be [market term] "behind the curve." That is an inflationary term to say that inflation is [Elazar term] "out of the cage." Once you let the lion out of the cage it's very difficult to get it back in the cage. That's the issue with inflation running rampant. The Fed on hold because of elections and now GDP is letting inflation out of the cage. We think that is great for gold (NYSEARCA:GLD). If you didn't know it we love gold. We love it for the next five years no matter what. (Gold gets our No Matter What rating.)
Let's review what happened last week and why we're so excited about these turn of events.
The dollar had a mini collapse last week. Let's see.
In three fast days the dollar had a mini collapse. Above you see the euro (NYSEARCA:FXE) versus the dollar (NYSEARCA:UUP). (Up means dollar down)
Let's put this three day move in context.
What in the world is going on here? These two moves are very exciting developments for US inflation and gold.

Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. #in, $spy, $qqq, $iwm, $vxx, $ycs, $fxe, $EUO, $YCS, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS

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