Dollar Rally Fails to Impress as China's Gold Demand Rises

Chuck is not impressed with the dollar's recent gains, calling it a 'knuckleheaded' move. He believes that buying dollars on rate hike forecasts will eventually backfire due to increasing bond servicing costs.

The dollar has been rallying, gaining 3 index points in the BBDXY and more in overnight markets. Gold and Silver tried to stage a comeback yesterday but fell short, with Gold losing $170 and Silver down by 66 cents. Central Bank buying is still supporting prices, but Chuck remains skeptical about the dollar's prospects.

China's gold imports are on the rise, exceeding last year's totals in August alone. Analysts predict that China may import around 1,700 tonnes of gold this year, making it the highest amount in a decade.