Sunday , 16 June 2024

What Latest QE Means for the U.S. Dollar and the Future Price of Gold

As U.S. Dollar Declines Gold Will Go Parabolic

The first round of QE had already guaranteed that the U.S. dollar was going to be under severe duress by next spring. Bernanke has added insult to injury with his latest quantitative easing, however, virtually guaranteeing that we will have a major currency crisis by next spring. [That can only mean one thing – a parabolic move upwards in the price of gold!]  Words: 550

So says Toby Connor ( in an article which Lorimer Wilson, editor of, has reformatted below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.) Connor goes on to say:

The U.S. dollar (see more here) was already headed down into a major 3 year cycle low.

Beginning of the End for U. S. Dollar

I think history will come to view this latest QE as the beginning of the end for the U.S. dollar as the world’s reserve currency and unless the Federal Reserve comes to their senses soon the dollar is doomed to follow every other fiat currency in history into an eventual hyperinflation and total devaluation.

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One has to protect his/her purchasing power from the depredations of central bankers bent on destroying the dollar which means one has to exchange his/her paper dollars for real assets. One can buy stocks but soaring inflation will destroy profit margins and the stock market is going to struggle more and more to rise in the face of soaring input costs. [As such,] there is only one sector that is positioned to protect one’s wealth from the Fed [and] that sector is… precious metals. (See more here.)

Just the Beginning for the Price of Gold

The more the Fed devalues [the U.S. dollar] the better the fundamentals will become. Gold is now entering the parabolic phase of this particular leg of the ongoing C-wave advance.

I doubt we will ever see sub $1300 gold again for the duration of this secular bull. Now that the HUI and silver have broken to new all time highs we have a rare condition in that the entire precious metal sector is trading in a vacuum with no real overhead resistance. This is the only sector in the world in this position. That is the recipe for an incredible move higher in a short period of time as funds begin to chase the out-performance in the precious metal sector.

The key now is to spot the top and lock in profits, but not to exit too early, and believe me most traders and investors are going to exit too early because they will try to trade this based on oscillators and overbought levels. That will be a huge mistake during a parabolic surge.

[As the U.S. dollar goes down further gold will go parabolic – so NOW is the time to get positioned in gold.]



Editor’s Note:

  • The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
  • Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above.
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U.S. dollar