It appears that we're in an aerial war against ISIS. This will be extremely expensive and will create even larger budget deficits. Washington has an election coming up shortly and every conceivable effort is being made by the administration to show that the economy is humming.
Europe is in a deflationary recession and as a result, money is pouring into the US. The US is seen as the only island of growth in the world, plus it is seen as a safe haven.
Below, we see the US dollar rocketing higher as money from around the world pours into the dollar as a safe haven and a source of income.
Note on the chart that the dollar is now heavily overbought (RSI).
Despite the surging dollar, gold today is well over $1200, suggesting internal strength of the yellow metal. GDX is up 0.17 and GDXJ is up 0.89 to 38.49. Thus I ... Log in or subscribe to continue reading.