Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Chinese gold consumption to rise considerably | Main | TASEKO MINES LTD: Disappoints »
Sunday
Nov262006

GOLD: Inverse movement to the US$ or a breakout?

If we examine both the chart for gold and the US$ we can see that they are moving in opposite directions. Will the gold rally come to an end if the dollar snaps back?

A recovery by the dollar real or manipulated would put a slight dent in the progress of gold but would not put an end to gold’s rally, in our opinion.

Everyone and his dog knows that the dollar has a long way to go down before it will find its true value and like any pendulum it will probably swing right past its own equilibrium.

However it is worth taking a look at both of these charts and note the opposite behaviour of both the dollar and gold.

us$

gld


Our strategy is to continue to hold on to the investments that we have made and accumulate as and when the opportunity presents itself.


26 November 2006

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>