Fear, Gold and the Dollar
By Frank Holmes
U.S. Global Investors
CEO and chief investment officer
The U.S. dollar was up last week against the euro out of fear of how debt problems in Greece and elsewhere in Europe will be resolved, and as a result gold had a tough week.
The dollar’s rally appears to be a short-term safe haven move, rather than a response to improving economic conditions in the U.S.
In fact, Friday’s report of a net loss of 20,000 jobs in December (the expectation was for a net gain in employment) and that many thousands more would-be workers have given up looking for jobs is evidence that the economy remains somewhat weak.
Frank Holmes - Fear Gold and the Dollar Feb 2010
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