Gold, and likely not cyrptocurrencies, will rally sharply when confidence falters as the crisis continues to unfold and intensify. Hyperinflation, an over predicted symptom of failing domestic and international confidence, comes only after it falters to the point that periphery and core (economy) nations can no longer sell their debt; they hold auction but nobody shows up. After that, they have two choices - default or print money to finance their unsustainable standard of livings. Default is rarely the option of the choice.
Intermarket trends allow investors to define the direction and concentration of confidence. Smart recognizes faltering confidence as risk-on trends in precious metals and consumer expectations. The former are tracked in the Matrix for subscribers.
Gold to Silver Ratio, one measure of risk-on and risk-off, is a proxy of confidence.
Intermarket capital flows have been antagonist towards gold for several months. Still bullish?
Headline: Gold steadies ahead of Fed meeting as dollar sags
JOHANNESBURG (Reuters) - Gold prices traded near a one-month high on Tuesday as the dollar languished at a more than one-year low ahead of a Federal Reserve meeting that is expected to provide more clues on U.S. monetary policy.
The market is not expecting a rate increase to result from the Fed's two-day meeting starting on Tuesday but it is looking for hints on the timing and extent of future moves.
Spot gold eased 0.1 percent to $1,252.60 an ounce at 0916 GMT. The metal had touched $1,258.79 in the previous session, its highest since June 23.
U.S. gold futures climbed 0.1 percent to $1,257.
Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.