Confidence Review - Gold
Eric De Groot | Sep 02, 2019 03:29AM ET
The old American idiom of panics and trend changes.
If your senses are telling you that something is wrong in the world, growing unrest in within all levels of society, it's definitely playing out in intermarket relationships. Gold and U.S. dollar generally trade in opposite directions. That is, until confidence falters and capital flows from the periphery economies to core (U.S. dollar). The dollar rallies, but so does gold as uncertainty rises and confidence falters. At first the fall in confidence is slow, but the deterioration follows a non-linear path. The computer recognizes something is wrong when gold and the US dollar start trading the same direction.
Gold vs Dollar Trading Correlation
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