Gold and US$ Rising Together?

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There is a MYTH that says since gold is priced in US$, that is why it always moves in opposite direction against US$. Well, the above chart proves this inverse relationship wrong! The candlesticks represent gold price while the green line is the US$ Index. We can see that both of them are RISING together recently.

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Over a 38 years period starting in 1981, the above chart shows that there were 4 obvious occasions whereby both gold and US$ moved in the SAME direction (red circles). At the top of the chart is the correlation coefficient between gold and US$, 1.00 means both of them always move in sync while -1.00 means they are inversely correlated. We can see that about 80% of the time they are inversely correlated, but they move up or down together 20% of the time.

The saying that both gold and US$ always go opposite each other is so old school that it is laughable. Welcome to the 21st century. If you are surprised about gold rising with the US$, it is about time you wake up and look at the world through unbiased glasses. In fact with the further implosion of Sovereign Debt Crisis in Europe, Japan and U.S., we will see more instances of both of them going up together as tsunami of money flow from the troubled regions into safe haven such as gold and the predominant currency US$ for the next 1–2 years. To find out what is Sovereign Debt Crisis 2.0 and how we can protect and grow our wealth for the coming 4 years, you can download my FREE ebook HERE to understand more.

Timing is Everything! 时机就是一切! Cheers 👍😀


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