CNBC Stock Blog

Art Cashin: US Dollar is Key to Gold, Oil, Stocks Now

Gold is setting price records, oil is climbing — but stocks are retreating Wednesday. What's going on? Art Cashin offered his market insights to CNBC.

Trader Talk With Art Cashin

"We saw some real resistance up at the [S&P] 1060, 1065 area" on Tuesday, Cashin said.

"But the amazing thing is that it's all about the dollar. Kind of like Gresham's Law*."

Cashin declared that "if you were sitting in a [floor] cage, you wouldn't be asking about anything from earnings to economic data. All you'd have to ask is, 'hey, Art, what's the dollar doing?' — and you'd know where gold, oil and stocks are going."

CNBC Data Pages:

Cashin conceded that belief in the US dollar's decline may be due to rumors — since denied — that certain "Arab states" sought a different reserve currency. But he said that such anxiety has a way of snowballing — and traders want to get out of greenbacks before an imagioned fall occurs.

"As long as the shopkeeper will take [the dollar], we'll buy gold" and any other hard assets we can, Cashin declared.

*Gresham's Law: "Bad money drives out good."

More Investor Intelligence:

Market Point/Counterpoint:

CNBC Slideshows:


CNBC's Companies in the News:


Bank of America

JPMorgan Chase

Santander Brasil



Disclosure information was not available for Cashin or his company.