We’re getting worried about the falling dollar. If we look at the rising gold price in the last two months, that usually signals higher prices for everything else.

The chart below from Richard Salsman from  INTERMARKET FORECASTING INC., shows that the gold price of $4,700 has been creeping up again and may be headed back to $5,000.

Now look at the dollar relative to other currencies. The only major trading partner country whose currency has fallen relative to the dollar is Japan’s Yen. And the White House wants the dollar to fall relative to the Yen as well in order to make American products cheaper. But it also makes imports MORE expensive and those rising prices won’t help with affordability.

We’re in the camp with Fed chair Kevin Warsh supporting a strong and stable dollar as a key to prosperity. We can’t get richer by making the dollar weaker.