Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Nearly 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 16 2018
By: Ira Epstein

Silver Slumps, US Military Weak, and PTJ Says We Are headed For Scary Moments
By: David Morgan

Slowly We Turn... Gold vs.
By: Gary Tanashian

COT Gold, Silver and US Dollar Index Report - November 16, 2018

GE, Nvidia, Nordstrom, Bitcoin All Tank, And The Fed Notices
By: John Rubino

Years of Recklessly Low Interest Rates Causes Inflation to Soar
By: Nathan McDonald

Gold Miners’ Q3’18 Fundamentals
By: Adam Hamilton, CPA

GoldSeek Radio Nugget: Bill Murphy and Chris Waltzek

Is Gold Under or Overpriced?
By: Arkadiusz Sieron


GoldSeek Web

Strong GDP numbers sends Dollar soaring

By: Dan Norcini

 -- Published: Tuesday, 23 December 2014 | Print  | Disqus 

This morning, the US Commerce Department released the Q3 2014 annual rate of growth number. The number shocked the analysts who had expected an upward revision to the previously released number of 3.9% but the average estimate was 4.3% growth. The actual number came in at 5.0%.

It was the fastest rate of growth since Q3 2003.

The market chose to focus on that number, sloughing off the disappointing Durable Goods Orders. They fell 0.7% in November. Analysts had been looking for a 3% increase.

The impact on the US Dollar was instantaneous. For the first time since April 2006 – more than eight years ago  – the USDX hit the 90 level! The reason is quite simple – more and more of the recent data that the market has chosen to focus on suggests that the Fed’s stated intention, to being normalizing interest rates next year, is on track. That continues to support the Dollar at the expense of the other majors due to the growth rate or interest rate differential. Money flows to where it can obtain the best yield, all things considered.

Here is an updated monthly chart showing the surge through the 90 level.


Look at the ADX line noted by the ellipse – it is rising solidly and is now above the 20 level. That indicates that this move is increasingly looking more and more like a long term trend of Dollar strength. The last barrier for the currency to scale now lies up near the 92 level. How it closes out this month/year, will therefore carry great significance for its fortunes in the early part of the New Year.

That same GDP data sent US equities higher with the Dow on track to hit the 18,000 mark. ( Note – it did just that as I am typing these comments). The Santa Claus rallying is underway in a big way!

Gold dropped lower – in an environment of steady growth, strong stocks, sinking commodities, strong Dollar due to the potential for rising rates, the asset simply has no fans except for all by the most dedicated gold bugs.

There are value-based buyers coming into gold down at these depressed levels but the momentum crowd seems to be losing interest in it quite rapidly. They are going after yield and for now, that yield lies elsewhere.

We still have some more economic data to look at yet this morning, namely consumer sentiment for December, consumer spending for November, new home sales for November and regional manufacturing data. We’ll see if that data supports the continued strength in equities and the Dollar through the remainder of the session or not.

By the way, a quick note – a Brazilian central bank official today noted that falling crude oil prices will help combat inflation in that nation. He expects oil to stay down for most of 2015. We’ll see how accurate that is.


| Digg This Article
 -- Published: Tuesday, 23 December 2014 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2018 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.