Gold From 'On The Go' To Narrow

"But first we begin with Breaking News: The S&P 500 is at a record-closing high following the largest drop in Personal Spending in nearly a year..."

So it hasn't crashed, yet...

In the meantime, it was but a week ago we penned "Gold on the Go", (replete in reviewing Moriarty's "Crow"); but since then Gold has gone notably narrow in a monetary/fiscal environment where one ought not think so.

Check it out: Year-to-date until a week ago, Gold's average daily net price change (either up or down) was 15 points. Now here are the net point changes for this past week (Mon-Fri): 5, 13, 8, 8, 6.

In fact, Gold's net change for the week was a wee -12 points. And further, Gold's overall high-to-low range for the past week was just 28 points, the narrowest since that ending February 14, 2020, over a year ago. Thus as we go to Gold's weekly bars from a year ago-to-date, the rightmost bar is the stubbiest of the entire lot:

"Well, the Dollar's been firming as yields are increasing..."

That's a good observation there. The Dollar Index this past week traded up to its highest level (92.940) in over three months as the Buck gets the bid to accommodate purchasing better yield. Why invest in the 10-Year Eurozone Central Government Bond at 0.040% when the yield on the 10-Year U.S. Treasury Note is 1.660%? Proves the point that the greater the proliferation of a currency (i.e. the Dollar), the less each unit is worth and thus the higher the reward (i.e. the yield) for taking such risk ought be, you see? (See, too, the Bolivar Soberano and ZimDollar).

But to the point of Gold's going narrow, 'tis peculiar indeed! With the diabolical debasement of the Dollar in its highest gear ever, should not Gold's trading range be more expansive that currently 'tis?

Take for example the EDTR ("expected daily trading range") of the Swiss Franc, its safe haven currency status closer to Gold than that of any other faux dough. To be sure, the Swiss Franc ($1.0671) of late has been coming off a bit given the Dollar's firming, but at least it's in play versus Gold's hitting the hay.

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