Wednesday, February 18, 2009

Pas De Deux! Dollar N Gold!

Below is the Gold and Dollar chart, normally they have an inverse relationship, but off late both can be seen doing some synchronized moves (see the shaded area). Gold rising is an indication of people hedging but Dollar rising is a bit confusing (anyways I am not even qualified to comment on this!). I think very soon they will revert to their original deviating ways…..the question is which goes where??? A passing thought, a dear friend of mine pointed out there is a bit of divergence happening between the SnP and Baltic Dry Index!!!






"O gold! I still prefer thee unto paper which makes bank credit like a bank of vapor." - Lord Byron



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