GOLD vs DXY with have entered the upside down
Green lines mark DXY tops
Red lines mark DXY bottoms
Purple lines mark unconfirmed trend change for DXY.
October 1st US rates topped, which caused Gold to rise with DXY.
Case #1
USA doesn't join the world in negative rates and more QE.
Gold continues to out perform in all currencies except USDs.
Case #2
USA monetary policy joins the world and goes to extremes again. The DXY drops helping out the world and the USD remains the reserve currency. Gold goes higher in USDs, but hits ceiling or falls in all other currencies.
Case #3
USD is no longer the reserve currency, and Gold priced vs a global basket of currencies and/or a new global currency.
Red lines mark DXY bottoms
Purple lines mark unconfirmed trend change for DXY.
October 1st US rates topped, which caused Gold to rise with DXY.
Case #1
USA doesn't join the world in negative rates and more QE.
Gold continues to out perform in all currencies except USDs.
Case #2
USA monetary policy joins the world and goes to extremes again. The DXY drops helping out the world and the USD remains the reserve currency. Gold goes higher in USDs, but hits ceiling or falls in all other currencies.
Case #3
USD is no longer the reserve currency, and Gold priced vs a global basket of currencies and/or a new global currency.
Commentaire:
October 1st US rates started topped and has effected gold more than DXY.