GOLD 0.51% $1,391.7 gold futures

us dollar bull trap ..

  1. 24,765 Posts.
    The small bear market rally by the US dollar is nothing but a bull trap for US dollar paper bug bulls imo.

    The following indicates plenty of weakness ahead for the US dollar. The following is not what US dollar bull markets are based on:

    "Gulf petro-powers to launch currency in latest threat to dollar hegemony

    The Arab states of the Gulf region have agreed to launch a single currency modelled on the euro, hoping to blaze a trail towards a pan-Arab monetary union swelling to the ancient borders of the Ummayad Caliphate.

    By Ambrose Evans-Pritchard

    The Gulf monetary union pact has come into effect, said Kuwaits finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait.

    The move will give the hyper-rich club of oil exporters a petro-currency of their own, greatly increasing their influence in the global exchange and capital markets and potentially displacing the US dollar as the pricing currency for oil contracts. Between them they amount to regional superpower with a GDP of $1.2 trillion (739bn), some 40pc of the worlds proven oil reserves, and financial clout equal to that of China.

    Saudi Arabia, Kuwait, Bahrain, and Qatar are to launch the first phase next year, creating a Gulf Monetary Council that will evolve quickly into a full-fledged central bank...

    The Gulf states remain divided over the wisdom of anchoring their economies to the US dollar. The Gulf currency dubbed Gulfo is likely to track a global exchange basket and may ultimately float as a regional reserve currency in its own right. The US dollar has failed. We need to delink, said Nahed Taher, chief executive of Bahrains Gulf One Investment Bank."

    Full article at
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