Historical Chart of Gold and the Dollar
With Gold making 52-week highs on a daily basis and the US Dollar making 52-week lows, below we highlight a chart of the two going back to 1975. As the chart shows, the two move in the opposite direction of each other most of the time. Gold made its all time high of just under $850 back in January 1980 only to quickly reverse and move sharply lower. While Gold currently remains about $100 below its all-time highs, the ratio of Gold versus the US Dollar index is much closer to all time highs (2nd chart below). Most people seem to believe Gold will continue higher and the Dollar will go lower, but contrarians have a pretty compelling case based on these charts as well.
Hi, Just wonder if there is a similiar relationship between US$ and energy (as Gold). Also, wonder what event would need to happen to reverse the trend.
Posted by: mark | September 21, 2007 at 03:22 PM
I am not that worried about the markets now. Most of the bad news are out now. I think that we are in some kind of flat correction.
Posted by: Albert | January 25, 2008 at 02:29 AM