The traditional mumbo jumbo is dollar up, gold down. However, we may be entering a completely new phase. Gold and the dollar may no longer be archenemies. They are actually now moving to the same side of the fence, for the common enemy is the rapidly approaching electronic money, with so many analysts at banks now calling to abolishing paper money. What is interesting is that paper money places a check and balance against central banks from moving deep into negative interest rates. At some point, more and more people will just withdraw their cash and hoard it, which has already begun.

Right now, gold enthusiasts are closely watching the statement expected for this week from the Federal Reserve policy makers on Wednesday. They are clinging to anything, looking for any clues that the Fed is becoming less likely to raise interest rates. They fear that raising interest rates will support the dollar, but there is really a lot more going on behind the curtain.