Is the Gold ‘Bubble’ turning into bear market?
If you were to graph the U.S. dollar index (DXY) against gold and you see very similar things happening in inverse. I agree U.S. dollar is turning after long bear run.
I am more reluctant on Gold to say the run is over after 12 years but there is a case to be made that if the U.S. dollar is breaking trend so is gold.
Gold's move lower, like the dollar won't be overnight but gold is 100% higher from where it was at the end of 2008.
But, the conditions which drove the parabolic move in the gold largely remain intact.
Commodity brokers globally are diversifying away from the U.S. dollar. This a secular move.
Other economies are exposed and there remains tail risk in markets that include Europe and China property.
Be sure to tune into Fast Money this evening at 5:00 pm EDT as we will talk about this tonight on the show.