The Dollar and Gold

There has been a whole lot of chatter about how gold is going to go down because the dollar may be bottoming.  We believe that there is a significant probability that the reflexive anti-gold/pro-dollar trade is wrong.  Gold has been in a bull market in all fiat currencies over the past 10 years, not just dollars. 

We here at Running of the Bulls are both bullish on gold and the dollar, though we think that we should start watching for a gold top in the not too distant future. 

First, it looks like the dollar may be bottoming. 

And over the past few weeks, gold has traded in the opposite direction of the dollar.  But gold has generally gone down less than the dollar has gone up.

In fact, as the dollar bottoms, gold may be consolidating.


The above chart looks like gold is drawing one of those wedge type chart thingies that gold has traced throughout its ascent over the past several years.


I have no idea if gold is on the verge of breaking down or not. But until we see proof otherwise, the bull market in gold is still on, even if the dollar has bottomed.

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