DislikedHow else will gold bulls liquidate? There would still be buying of gold with a selling of the dollar but the selling pressure caused by profit taking in gold would cause it to top out.
I think thats the sort of world where that would happen. Buyers of yesterday need buyers of today to get outIgnored
i fail to understand what you are saying. Maybe you can simplyfi ?
The whole point in any stop cascade/market crash is the lack of the new buyers willing to counter the selling pressure. Profit taking IS converting gold into cash (usd). This creates the demand for the dollar (but that's not the only reason). (there's confusion in my head right now )
ok, i may have some idea what you said but i would like to give you an example:
Say you buy 1 ounce of gold at 1500$. Then you sell it at 1000$. You lost 500$. That very same amount of gold swiched hands while 500$ was vanished meaning that there are now less dollars available !? Less dollars means higher value of dollar ? I'm tired, sorry if i'm dead wrong
Anyway, this is not the point. Dollar will not rise solely because gold falls. You have to think of the reasons why the gold rallied (and dollar fell) to understand why it's all but logical to assume that the exact opposite can be on the cards. There will be no such environment where continously (for a long period of time) dollar index gains and gold shoots up (don't scream at me on this one, i know of the exeptions).