“Security is the chief enemy of mortals.” – William Shakespeare
FX Trading – Gold is telling us something … as usual
In our webinar yesterday, we showed a chart comparing gold and the US dollar index, as you can see below:
We said what is interesting about this chart is the fact gold and the US dollar have moved in a positive correlation lately. We’ve highlighted the area on the chart roughly where you can see the two price series started moving together. This isn’t usually the case as you well know.
In fact, we usually see a very tight negative correlation, i.e. gold strength and dollar weakness and vice versa. That makes some economic sense, because as gold is priced in dollars, and gold must maintain global purchasing power as an international standard, a……
……read pages 2- 4 HERE