Tag Archive: us debt

Why the Dollar Is Overvalued

The U.S. dollar has been on the stronger side of the ledger in recent months. There are numerous factors at work that have kept the greenback moving higher, including strong U.S.  economic data and weakness in other regions. Creeping Weakness Affecting the Dollar Recent months have seen some significant weakness creep into the U.S. data stream, however, and China has been reporting some serious weakness of its own. The dollar has likely enjoyed the benefits of weaker growth in emerging markets and the fear of... Continue Reading

Category |

6 Reasons We Could See a Weaker Dollar

As a dollar-denominated commodity, the gold market can be heavily influenced by strength or weakness in the greenback. Dollar strength may weigh on gold as it makes the metal relatively more expensive for foreign buyers, while a weaker dollar may boost the price of gold as it makes the metal relatively less expensive. The relationship between gold and the dollar, and all other paper currencies for that matter, is so important that investors often buy the metal as a hedge against a weaker dollar. Although... Continue Reading

Category |