Since 2015, gold has been correlated to the US dollar. What's next?

Most of the time, gold is inversely correlated to the US dollar.

The problem with such analysis is that frequency does not mean amplitude.

The above chart proves that point.

Tweet Inspiration

#Gold Price Forecast: A Weaker Dollar Is The Easiest Path To $2,000 Gold#preciousmetals #markets @KitcoNewsNOW @mike_maloney @SeekingAlpha https://bit.ly/34qlECI

Gold Eagle @GoldEagleCom

Gold Eagle

That Gold Eagle Tweet inspired this post.

My chart seems contradictory. And I set out disagree.

Ironically, upon further investigation, I believe Gold Eagle is correct, for now.

I am working on some additional charts and fundamentals to explain why.

For now, let's just say it's important to understand that movements in the dollar do not explain movements in gold.

If dollar movements explained gold, the gold would not be at $1480.

This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD retreats toward 1.0550 as dollar rebounds

EUR/USD has lost its traction in the American session and retreated to the 1.0550 area. In the absence of high-tier macroeconomic data releases, the dollar is staging a rebound with the US Dollar Index rising above 103.00 and forcing the pair to edge lower.

EUR/USD News

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD consolidates its weekly gains below 1.2500

GBP/USD has extended its sideways grind below 1.2500 into the second half of the day on Friday with the dollar staying resilient against its rivals. Nevertheless, the pair remains on track to snap a four-week losing streak.

GBP/USD News

Gold loses traction, drops below $1,840

Gold loses traction, drops below $1,840

Gold came under modest bearish pressure in the American session on Friday and dropped below $1,840. The benchmark 10-year US Treasury bond yield stays quiet above 2.8%, helping XAU/USD limit its losses ahead of the weekend.

Gold News

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

Bitcoin price will bounce to $36,000, but what happens next will leave you shocked

A brief technical and on-chain analysis on Bitcoin price. Here, analysts evaluate where BTC could be heading next. Does the possibility for a cat bounce make sense?

Read more

PANW shows bullish reversal chart pattern after earnings beat

PANW shows bullish reversal chart pattern after earnings beat

PANW stock benefits from continued strong revenue growth. Palo Alto Networks now nearly services half of the Global 2000. PANW stock is showing a bullish reversal pattern on its daily chart.

Read more

Majors

Cryptocurrencies

Signatures