My Thoughts On Gold
We all know of the inverse relationship between gold and the dollar. As the dollar rallies gold prices will most likely fall. If the dollar sells off gold prices will most likely rally as seen in the above chart.
Notice what's taking place over the last three weeks. The dollar(bottom chart) has been moving higher but gold is not going lower, instead it's trending higher with the dollar. I take this as a very bullish sign. This tells me that gold is moving higher based on it's own fundamentals and not just currency fluctuations. I'd keep an eye on gold and look to buy the dips..
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![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
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4 comments:
Yeah, I loaded some GDX (gold miners) this week. I expect to keep it for several years...
Kevin,
To better understand what seems to be happening, add the bond market to your analyses.
You will find that gold, contrary to its typical relationship, is holding its own against a backdrop of higher interest rates.
Seems possible that a large bond holder (China) is reallocating bond assets into the metals markets.
Good point Lou
great observation Kevin.. gold is starting to take on a life of its own... like it did back in the 1970's. uh oh.
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