| | | OK, time for a step back. Here's what I see from a bit further back. Since gold bottomed in the handle formation about 13-14 months ago, the dollar has had a rally out of it's 3-year cycle low, and that rally has been furious the last few days (it accelerated when Russia decided to wage war).
And in that last 13+ months? Gold is up about 12.6 %.
Looking back at the big rally years ago coming out of the '08-09 low, I recall a positive correlation between gold and the $US which is atypical. This move I believe is even more profound, as it's coming out of a multi year low for the dollar and as I recall, the positive correlation is more than twice as long.
And as with gold when it peaked years ago, the slope gets mighty steep at the end as everybody piles on.
Only, this time it is the dollar with the steep upward slope of late. I don't know if this presages a short term or a multi year peak in the dollar, but I think it could be like when you look in your rear view mirror: The peak you see is closer than it appears.
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