Homepage
PR Newswire
D123, thanks. This article keeps me thinking for a while.
I notice around 2006-2008, Inflation(I assume based on USD) and Gold kind of decoupled suddenly in the Chart. They were following closely for like 26 years which as far as the chart could show but the author choose to conclude based on the last few years of decoupling which i find curious.
If we look at AUDUSD=X chart, (a Commodity currency) there is also a similar 2006-2008 steep AUD strength against USD which follow the pattern of gold price increase.
In 2008 AUD dives, Gold and USD strengthen together due to uncertainty.
After 2008, QEs came in, USD starts to weaken. Gold continues to strength together with AUD.
All this seems to match to the chart you have linked coincidentally.
Conclusion i have is that gold price increase due to few factors.
1. Weak USD. (Alot of gold is bought outside US.)
2. Strong Economy/Commodity Growth outside US.
Cory
I notice around 2006-2008, Inflation(I assume based on USD) and Gold kind of decoupled suddenly in the Chart. They were following closely for like 26 years which as far as the chart could show but the author choose to conclude based on the last few years of decoupling which i find curious.
If we look at AUDUSD=X chart, (a Commodity currency) there is also a similar 2006-2008 steep AUD strength against USD which follow the pattern of gold price increase.
In 2008 AUD dives, Gold and USD strengthen together due to uncertainty.
After 2008, QEs came in, USD starts to weaken. Gold continues to strength together with AUD.
All this seems to match to the chart you have linked coincidentally.
Conclusion i have is that gold price increase due to few factors.
1. Weak USD. (Alot of gold is bought outside US.)
2. Strong Economy/Commodity Growth outside US.
Cory