i agree on the dollar. however, the XAU seems to be dropping no matter what else happens.
the possible combinations are: NAZ up, gold down, XAU down. NAZ down, gold up, XAU down. NAZ up, gold up, XAU down. NAZ down, gold down, XAU down.
the same goes for the dollar/XAU correlation: dollar up, XAU down. dollar down, XAU down.
if the XAU continues at the rate seen over the last week, it will be at zero in two months time. a chart dude on LWs is btw. prognosticating a target of 30 for the XAU...not that i believe this will happen, just pointing out that some people have a very negative outlook...
in any case, the weakness in the XAU indicates no gold rally is likely in the foreseeable future. we'd need to see some divergent strength in the XAU, but it appears people have lost interest completely, in spite of the recent mergers. |
