I am noticing some unusual behavior in the gold and US dollar index.
The reader will note that in August gold moved sideways with not much for gyrations higher or lower. During the same period, the dollar index moved up and down significantly in the range of 3% or so within the month.
In the last 6 weeks we see gold moving steadily upward by $USD150 to $USD 1100. A gain of nearly 16%.
On the other hand, we see the US dollar index slide from 78 to 75, or about 4%.
The magnitude of the upward move in gold is causing me to wonder, has gold decoupled from the stock market and the US dollar?
If the dollar rebounds, as I suspect it will in the next few months, will gold continue to climb or drop back and present us with a good buying opportunity?
Has fear gripped the minds of many investors that fiat currencies are preparing for a race to the bottom?