Gold doesn’t like a rising USD
Posted on 22 September 2011
With the European liquidity/solvency crisis in full swing, and major disappointment from the markets on the Fed’s announcement, it looks increasingly likely that the USD will continue to catch a bid. A likely casualty of a higher dollar is gold:
Note that prior periods of USD strength have taken the wind out of gold’s uptrend. With the 150 day moving average and the long term uptrend sharing the $1600 that area looks like the most probable target for this consolidation.
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Great chart Rohan – mind if I use for Chart of the Day tomorrow @macrobusiness?
http://www.twitter.com/ThePrinceMB
[...] does not like the rally in the US dollar. (Data Diary also Money [...]
[...] does not like the rally in the US dollar. (Data Diary also Money [...]
[...] Gold is getting hammered, it dropped another 4.79% yesterday and now sits at 1650 down from the high of USD 1920 odd. Why? position squaring but also because a weak USD was so much a part of commodities and growth currency rallies over the past couple of years. Gold doesn’t like a stronger USD. Chart here [...]