There are numerous press release, short recommendation, publication and observation which are all stating a bearish view toward the USD. I am well aware of the arguments which imply that the USD should head lower vs. other national currencies and there is no need to mention them. But, as I already discuss in several previous posts, the Forex market seems to be well managed toward stability.
Here is a performance comparison 200 day chart between several popular national currencies, Gold, Silver and OIL. Looking at the chart it is very easy to notice that almost all national currencies are actually down to unchanged against the USD (200 days time frame) the exceptions are the South African Rand (ZAR) and the Canadian Dollar – both are gold, silver & commodity rich nations.
The conclusion is this: Under current market condition it is a possibility that the USD will continue to stay relatively unchanged vs. other national currencies. Regardless of the country you are living in, gold and silver savings have been profitable the last 200 days. Investors who look for currency diversification should look at gold (with a glance of silver) and ignore the minor fluctuation in the Forex market.
In the Sunday Times over here in the UK There was a comment that said Gold would have to be in excess of $2000 to have the same real terms value of the $850 historical spike of a couple of decades back.
Number of bullish/scary forecasts of $1000+ put forward some more conservative bulls at $600 and a few bears suggesting a bubble, which I can't quiet subscribe to no matter how hard I try. There has been a production gap for ages tat was only covered by Bullion reserve sales, which seems now to have ceased to offer up the supply over handf it used to.
I think with Asian wealth (India, China) we have a macro cycle coming in jewelry never mind industrial use.
Plus we have potential upside spikes even if trade wars don't erupt China may lighten up on USD Gilts purchases and push money on value commodities as well as other currencies.
Interesting times especially as a South African born and bred Brit.