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
Comments
QuantitativeExhaustion
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QuantitativeExhaustion
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QuantitativeExhaustion
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Swiss Franc alone is not the cause of Gold going higher.
QuantitativeExhaustion
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Brittish Pound a bit tough to read vs Gold
QuantitativeExhaustion
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Overtime, Euro shows us high correlation with Gold. Still dominating the trend is an inverse correlation with US Dollar and Gold.
QuantitativeExhaustion
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Alone, Yen has little impact on Gold price
QuantitativeExhaustion
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Gold vs US Dollar
Monthly chart
QuantitativeExhaustion
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Very difficult to see on a daily or weekly chart. When scale out beyond monthly you start to see the inverse relationship.
QuantitativeExhaustion
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Gold
US Dollar
Euro
QuantitativeExhaustion
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From the looks of it Gold is reacting to both Yen/Euro fast moves together. However, US Dollar has to be stable or not reacting in the opposite manner for Gold to move in either direction. As you can see US Dollar is stalling out a possible gold run.