Eric, I don't have the technical skills to prove that We have a de-coupling taking place in Our precious metals from the 'not so almighty" dollar is this indeed what We are witnessing, sure would appear that these last few days the case could be made, imagine that perhaps the light of day when another short squeeze failed to work this time.
Bob C
Fort Myers
Gold is the world's permier currency, but don't expect many to officially recognize it as such.
While the inverse correlation of the US dollar, gold, and stocks is still present, it has "loosened" against gold. That is, rallies in the U.S. dollar no longer create as large of a downside reaction in gold. This loosening will continue as long as confidence in paper continues to deteriorate at an accelerating rate. The relative direction in the U.S. dollar, gold, and stocks can be view in the chart below.
U.S. Dollar Index, Gold London PM Fixed, and S&P 500:
A better indication of the decoupling of gold from fiat will be revealed by a higher order (parabolic) trend acceleration of gold priced in major currencies. This trend, which has already started, will intensify once the upper trading channel (2001) is broken to the upside.
Gold London PM Fixed and U.S. Dollar Major Currencies Index Ratio:
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