The Fed's Final Frontier

Despite Record Debt, The Dollar Still Rules

You'd figure that after the U.S. froze Russia's dollar assets last year, BRICS and other non-Western countries would rush to de-dollarize, especially with our government racking up evermore debit as it pours weapons into the Ukraine and Israel. 

And yet, despite all that, the dollar index is trading near its high for the year. 

And over the last ten years, the dollar has stayed dominant as a global currency. 

 

You will find more infographics at Statista

The Fed's Final Frontier

An interesting thread on X on Friday purported to detail the mechanics of how the Fed has managed this. 

Nevertheless, Gold Gets A Bid

Despite the consistent strength of the dollar, gold was up 3.43% on Friday, likely as investors sought it as a haven in light of the intensifying war in the Mideast. At the same time, the oversold gold miner we wrote about here a couple of weeks ago got a bid as well. 

It's still oversold, but not quite as much as it was when we first wrote about it. Then, it had an RSI (Relative Strength Index) in the teens; now it has an RSI of about 27. It's possible we placed our trade on this one near a bottom. 

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