Gold vs US Dollar Index

 

 

Comments:

Notice that the US dollar index is back in the 79 to 79.5 range again as it was in August 2009.
Gold has moved from the $940 to $950 per ounce range in August to $1100 and change today.  It also appears that gold will take a run at the 50 day SMA soon, a very bullish move.

This appears to be good evidence of gold decoupling from the US dollar.
 

Comments

  1. AnonymousFebruary 4, 2010 at 9:15 AM

    PW, what does it mean when gold decouples from the U.S. dollar? I do not understand.

    ReplyDelete
  2. PW BaileyFebruary 4, 2010 at 12:26 PM

    What I refer to as decoupling is that the US dollar and gold begin to move independent of each other. Typically when the US dollar goes up, the price of gold (in US dollars) drops. We have been noticing that in the last number of months that there is a growing independence of gold from the ups and downs of the dollar.
    Will this decoupling last?
    Time will tell.

    ReplyDelete
  3. YugoFebruary 8, 2010 at 7:15 AM

    Wrong.People,companies and countries are cash strapped.There is a huge demand for money,not gold.
    Gold is(was)just another toy in the hands of GoldmanSucks and others.
    Time for gold will be when HelicopterBen
    starts flying-keep an eye on Congress,they have the helicopter keys.
    With respect,from the Old world.

    ReplyDelete
  4. PW BaileyFebruary 8, 2010 at 10:08 PM

    I agree with Yugo that cash is king for now. Gold will soon have its day when the masses lose faith in fiat currencies.

    ReplyDelete

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