Gold below a key level–dollar chasing or leading…

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Key Reports (WSJ):
No major economic indicators scheduled.

Quotable

“Giving money and power to government is like giving whiskey and car keys to teenage boys.”

                              P.J. O’Rourke

FX Trading – Declare victory and party hard!
Now that gold has slipped below seeming near-term chart support at $893; is the next level at 858 in the cards?

Gold Daily

A look at the two price series i.e. the pattern, suggests (in our minds eye at least) gold may be leading the buck lower here….

US Dollar Index Daily

Seems gold as a risk aversion play–playing its role as a safe haven–means it loses support in an environment when things appear a bit brighter. 

Thought it may be a stretch to say the correlations we saw in the past for gold, trading as a commodity, may be over.  But it isn’t a stretch to think because the global liquidity environment will not be the same as the recent past, the so-called simple correlation trades may be harder to find. 

  • Broker77

    After you suggested to sell the dollar in your last article .. I decided not to listen to anyone anymore, but base the analysis on my thoughts only. Regards!
    David

  • Broker77

    After you suggested to sell the dollar in your last article .. I decided not to listen to anyone anymore, but base the analysis on my thoughts only. Regards!
    David