If you heard that the US dollar made a comeback you weren’t mistaken. In fact, it’s been a big deal recently. However, you should know that not only is it making a comeback but it’s still volatile. It’s tough to get excited for too long when you have watched the market go up and down, right?
Today as I write this, August 1st, 2013, the dollar has made a gain and it’s been an interesting one. It’s one that people have been watching for, as to see what would change and how quickly. With fear of the economy and the outcome, it’s been a waiting game for pretty much everyone.
So, if it’s looking up today, why did the Federal Reserve downgrade its view of the economic recovery here in the US? Could it be that the dollar’s rise is so small that it’s simply insignificant of any long term view that we should just chalk it up as a mistake?
What if we just looked at it as something so short term that it didn’t really impact the way we think at all? Here is what you need to know about the recent change, and what is most likely going to happen in the near future.
Whenever the dollar goes back up, it causes most Americans to wonder if the economy is making a recovery. While some dispute that it is, gold was slightly up in December. This would indicate the dollar was down, and keep it mind it’s a time of the year when people are shopping.
This means that they were confident enough to spend, but because retail sales still weren’t as high as expected, it had retailers wondering what they were in for come January, and whether or not they would be able to forge a better retail season.
Comex was actually dipping into negative territory, and that is considering that they are a big supplier of precious metals. This was all very interesting heading into April, May, and June, when Comex made the statement that they couldn’t guarantee delivery even if you ordered your metals in advance.
The ISM? They said that:
- Manufacturing rose from 55.4% from June at 50.9% in June
- MarketWatch expected a reading of no more than 52.0%
- Jobless claims fell by 19,000
Is this enough to indicate that the dollar is stronger once again? Silver was strong last September, but was there any reason to think that gold would go back up at that time as well? Remember, gold is worth more, and if people are confident and spending the US dollar makes a gain. If not, it makes a dump.
Is This a Modest Report on the US Dollar?
Seemingly, we would think that the dollar would make a comeback this week. However, how can we be so sure? While the economy isn’t really in a strong recovery period, what we can do is prepare.
As the value of the dollar falls, or rather because it’s so unpredictable, don’t you think it’s time to prepare by buying gold? If you would like to learn more about what the trends of the US dollar tell us and how it affects our future, simply GO HERE to learn more!
Tags: US Dollar