Gold has already been rising in anticipation of the Fed’s throwing of the dollar to the proverbial wolves. The traders of gold did not expect a whole half point either, though as gold marched up higher after the decisions taken by the Fed. If the Fed itself no longer cares about the health of the dollar why on earth should foreign investors - both currency traders and precious metal traders and speculators. Of the trillions of dollars of capital bleeding worldwide thanks to the dollar’s woes, of course some given fraction will migrate into the gold arena.
Gold’s appreciation in value versus currency levels may be dramatic in the near and long term future. If major global investors worldwide are shocked further into diversifying away from far too overweight dollar based holdings - then what are the options ?
Foreign Currency Trading Beginner Resource Center
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