If history is any guide, I expect the former. For decades the Fed has trashed the dollar in an attempt to paper over declining living standards to keep the U.S.
For this reason I do not think the air pocket the precious metals yesterday is a reason for concern. Gold in dollar terms is down 4 percent this year, but I expect gold to post a gain this year when the counting is done in three months.
- Source, James Turk via King World News