Market Update – How far can gold and U.S. dollar move

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Strong Dollar Trade Chart 1:  The price of Gold began its parabolic ascent as in the summer of 2007 moving from approximately $665 to over $1000/oz. as the DXY (U.S. dollar) gapped lower on Fed actions to combat the credit bubble.

To get Gold back to a place before where the U.S. dollar (DXY) depreciated as a direct function of credit bubble you need to go to around $650.

Look at the move in the DXY as a function of the credit bubble move.    Now that the U.S. dollar is back to strength as a result of "fundamentals" and not flight to quality - you need to see where gold was last at these levels.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks


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