US Dollar does not always have the strongest impact on Gold. For the most part, US Dollar and Gold do trade inversely. If you take a look below I replicated some of Dennis Gartman charts he's been publishing, Gold x US Dollar vs short Yen and Gold x US Dollar vs Short Euro, both spread multiple trades have worked out very well. Taking a further look with Gold x US Dollar vs Yen, you noticed how similar the 1980 Gold bubble played out vs the most recent Gold bubble. To knock out a recent surge in US oil production, In similar fashion in 1984-85 Oil also plunged as Saudi OPEC decided to flood the market with cheap oil. Oil helped cause the US Dollar to go up to unseen levels. Also in an unusual fashion, Gold decoupled vs US Dollar for a very short time before later following oil down to record lows.
Furthermore, I am betting when the dust settles in Europe, the Euro will stabilize and our lagging US Dollar rise will cause Gold to hit new lows.
Chart Above
1) Gold in Dollar terms
2) Gold vs Euro
3) Gold vs Yen
Furthermore, I am betting when the dust settles in Europe, the Euro will stabilize and our lagging US Dollar rise will cause Gold to hit new lows.
Chart Above
1) Gold in Dollar terms
2) Gold vs Euro
3) Gold vs Yen
