The currency manipulation involving the US dollar, major fiat currencies and financial gold, XAU, goes on – with a twofold overall effect: a controlled weakening of the US dollar and an increase in the price of financial gold, XAU (as well controlled). This could have resulted in a zero sum game for e.g. eurogold. But even as the euro appreciates versus the dollar, financial gold in euro goes up. Talk about the wonders of modern algorithmics…PS on today’s continued melt up.

The last run-up started on wednesday in the early afternoon hours (GMT), when the USDX was lifted by 70 basis points within two hours (first phase) and subsequently smashed to 95,54 points during the night (two a.m. UTC, second phase). The downward move was about twice as much as the upward move in the preceeding afternoon.

The second phase was a accompanied by a seemingly proportionate appreciation of financial gold in dollars, however the euro (currency) did not participate in this move, not to the full extent.

This is strange, as nearly 60 % of the USDX are euros. Can’t explain this, but maybe the phenomenon goes back to a very strong upward move in the yen (only13 percent of the USDX).

Then the USDX went on a break at the level of 95,50 (some hours during noon on thursday in Europe), while financial gold in $ and € were lifted “independently” (third phase). Starting at 10 a.m. GMT the USDX began to rise again, while at the same time financial gold in $ and € began also to appreciate (fourth phase).

What the fuck !!!???

Post Scriptum, Feb, 11, 20:30 MEWT: Ok, the melt up in paper gold, that happened today, was a sight to behold. And it was without the help of a declining dollar (at least after 8:30 a.m. London time). I don’t know, why they let this happen. But you should be skeptical, that the reason for it was rising demand for physical pure and simple.

Not in a conventional sense. Maybe there is rising demand for physical from the part of the persons, who have been running this Ponzi Scheme all along. These agents want to extend it another time. They are scratching at the bottom of their barrel and try to convince the owners of physical to make their metal available.

And yes, there might be some increased demand for physical from people, who see it coming.

But I would not hold my breath for this explanation. Maybe they are not able to supply their traditional customers from the jewellery industry any longer. And this is their last ditch sourcing effort. They are still behind the steering wheel. Having said that, enjoy while it lasts, but remember, that the $ POG is a far cry from revalued aurum, no matter how high the paper gold price will climb.