Gold Finally Breaks Ties With The Dollar's Demise


We've cited time and again over the years that Gold plays no currency favorites. But let's face it: this recent selling in Gold was getting a little ridiculous given the Dollar's having taken on a more material demise of late. Why, even the once-venerable Reuters in countering the conventional wisdom that Gold and the Dollar trade in indelibly-negative correlation noted last Monday that "...Gold and Dollar Pay the Price...", (perhaps their writers have been sensibly peeking at The Gold Update), as the Biden Vaccine and other purported policies get set to save the world from COVID and the cruel stateside ways.

But regardless as to how one chooses to couch it, until this past Monday (November 30), both Gold and the Dollar from a month ago (21 trading days) had been slipping down their respective slopes. Then come these last five trading days (from the white bar in the below chart), Gold -- the true currency --- finally broke ties and saw fit to rise vis-à-vis the Dollar -- a faux currency -- furthering its own demise:

As for our endeavoring to keep pace with Gold's machinations of late, we've been all over the place. Going on for many a week about Gold's essentially consolidating rather than correcting, price truly began correcting, our thus affirming so a week ago, to then instead reverse right back upward and settle this past week Friday at 1842 in recording its second-best weekly net gain (+3.3%) since that ending July 31. A lovely recovery indeed after our chasing Gold sideways, then down, and now up. 

Nonetheless, popping further down their negative track are Gold's red dots of parabolic Short trend as we next see across the weekly bars from a year ago-to-date. And while the distance from Friday's close up to the rightmost red dot is 120 points -- the nearest a close has been to its respective red dot these past four weeks -- Gold's "expected weekly trading range" of 80 points makes it still quite the stretch to imminently flip the trend to Long; however the duration of this Short trend is now (at 15 weeks) the most since the summer of 2018, and prior to that since the price-gutting spring of 2013:

1 2 3
View single page >> |

Disclaimer: If ever a contributor needed a disclaimer, it's me. Indeed, your very presence here has already bound you in the Past, Present and Future to this disclaimer and to your acknowledging ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.