China's announcement to abandon its U.S. dollar peg in favor of a basket of currencies has to be seen like a snowball in the making: initially, there will be little impact, but seismic shifts have been initiated.
A couple of weeks ago the U.S. $ Index broke through the third FAN trend line, often referred to as a blow-off trend. Since then the Index has moved sideways but with a negative bias.
Interest rates have surprised most economists in the last year, as it was expected that long-term rates would rise with the Fed Funds rate hikes. To predict what may happen to interest rates, I must first explain how they became so low.
The US$ moves up a little, gold moves down a little, is the game of opposite movements in progress again?
Bear Creek hits silver, UEX tags uranium, Cameco eyes Boomerang, Continental cut gold-copper in Tibet and more this week on the Canadian markets.
A little upside here, a little downside there and we're back almost to where we started the week in gold.
There is always a temptation to comment on murderous events such as the London bombing but I'll hold my views to myself only to say that the Londoners have been through worse and are made of stern stuff.