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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (85648)	8/29/2007 9:58:09 AM
From: bart13	Read Replies (1) \| Respond to of 110194

I'm not sure we're talking about the same issues. As I read it, all he's saying/concluding is "The historical fact is that gold's biggest moves occur when the U.S. dollar is relatively stable." The USDX moved from 1.20 to .86 and gold moved from $250-$400 from 2002-2004... and then gold moved to $650 while the USDX was in a .80-.90 trading range. In the big gold run in the late '70s, the USDX was in a trading range of .84 to .95. My basic take is that the correlation between the USDX and gold is fairly poor historically... and I do agree about the trade and budget deficit messes too. I'm not at all a wild gold bull currently, but think the chances of a nice short term burst to the upside are good and am looking for an entry point. We live in interesting times...