Figure 1 is a concept that I have put forward before,
and it is gold's performance relative to a basket of 8 currencies.Those currencies
are: 1) Australian Dollar; 2) Canadian Dollar; 3) Swiss Franc; 4) Eurodollar;
5) British Pound; 6) Singaporean Dollar; 7) Japanese Yen; 8) US Dollar. This
is a weekly chart. Relative to other currencies, gold is starting to outperform,
and the indicator has turned positive after about 10 months of underperformance.
Figure 1. Gold v. Currencies
Two other factors in gold's favor that have been discussed in this blog over
the past 4 months are: 1) the
Dollar has a high likelihood of unraveling (and it is!); 2) gold
is on a launching pad that should result in a strong secular move.
Disclaimer: Guy M. Lerner is the editor and founder
of The Technical Take blog. His commentary on the financial markets
is based upon information thought to be reliable and is not meant as investment
advice. Under no circumstances does the information in his columns represent
a recommendation to buy or sell stocks. Lerner may on occasion hold positions
in the securities mentioned in his columns and on the Web site; in all instances,
all positions are fully disclosed at http://thetechnicaltakedotcom.blogspot.com/.
However, their positions may change at anytime. For more information on any
of the above, please review The Technical Take's full Terms of Use and Privacy
Policy (link below). While Lerner cannot provide investment advice or recommendations,
he invites you to send your comments to: guy@thetechnicaltake.com.
Copyright Notice: Except for making one printed
copy of this newsletter or any other materials, files or documents available
from, accessible through or published by TheTechnicalTake, LLC for your personal
use (or downloading for the same limited purpose), none of these said materials,
files and/or documents may be reproduced, republished, rebroadcast or otherwise
re-distributed without the prior expressed written permission of Guy M. Lerner.
Circle Us