Gold has already traded at all time highs despite the failure of the U.S. Dollar index to break its 2008 lows. This divergence and source of frustration for many readers is not dollar strength but rather a reflection of the components within the index. Although gold has emerged as the world’s currency of choice, it remains completely ignored by the U.S. Dollar Index.
One reader has characterized the rally as pseudo-strength. That is, strength defined by differential rates of devaluation. This type of strength is an illusion. The breakout and acceleration of the global price of gold as defined by the U.S. Dollar Major Currencies Index reveals the extent of this illusion.
Gold London PM Fixed and U.S. Dollar Major Currencies Index Ratio
Thanks Eric. Appreciate the reply.
While the big boys are positioning for another USD downleg, it's been 3 years now of USD going lower talk.
It has not taken out the 2008 low, nor the 2009 high for that matter. Isn't it possible that it's just a range trade, and never goes lower?
Everything subscribes to it going lower, and has for years, but it hasn't.
All unmaterialised predictions. I suppose those regular JS readers might be disallusioned as there also hasn't been the explosive upside in gold - the big guys just keep directing printed money to cap it's upside.
All frustrating. Then also Nat Gas looks like it's getting upward momentum, then gets smashed back down in an instant, even in an increased demand period.
Silver looks like the only strong one.
A
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