Gold vs USDX

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Subprime JD's picture
Subprime JD
Status: Platinum Member (Offline)
Joined: Feb 17 2009
Posts: 562
Gold vs USDX

Here is a 6 month chart of gold

And here is a 6 month chart of the USDX

 

Things that stick out to me:

(1) Gold is now at a higher level than it was when the USDX was at the 74 level.

(2) Gold has risen in spite of the rise of the USDX from 74 to 86. A 14% rise in the USDX in the last 6 months has corresponded with a 19% rise in gold from its 1045 near term bottom that was placed in Feb 2010.

(3) The last 2 months has shown strength in gold and USDX together.

Analysis: strong buying out of EU is supportive of these correlations. While gold and USDX move inverse to each other this correlation has broken for now. Further deterioration in the EUR causing a spike in the dollar can hurt gold in the near term, but once the attention is focused on the fiat king (USD) gold should continue its upward momentum.

plato1965's picture
plato1965
Status: Platinum Member (Offline)
Joined: Feb 18 2009
Posts: 615
Re: Gold vs USDX

 

 another way of looking at things...

 Last weeks action in the fiat skydiving competition...

 

 

Energeek's picture
Energeek
Status: Member (Offline)
Joined: Oct 14 2009
Posts: 7
Re: Gold vs USDX

More interesting charts here: Priced in Gold - True Prices Measured in Gold.

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