Saturday, January 13, 2018

Gold And The GolDollar Index

One of my readers has asked me about the Goldollar index. Here are the updated two charts:

Long-term picture

source: Simple Digressions

Note that most recently the Goldollar index has bounced off its long-term trend line and now it is marching higher.

Short-term picture

source: Simple Digressions

However, in the short term there is quite a big divergence between gold and the index (which, generally, go in tandem). Gold has crossed above its strong resistance (the blue circle) while the index is still below a similar resistance level. It looks like a short-term correction or a stall in gold prices is in the making.