Gold, U.S. Dollar, EURO and YEN Price Action

December 12th I wrote that another area to keep an eye on was trading Gold priced in YEN.   March 31st, I finally made the call that this trade made sense.  The following chart shows how the yellow metal traded in YEN is up almost 5% more than gold traded in U.S. Dollars the last 60 days with most of that move coming after March 20th.

It was in February that things started to get a little hectic with the Hard Asset currencies represented by the EURO, British Pound, U.S. Dollar, Canadian Dollar, YEN and Swiss Francs.  This can be attributed to the concerns over Greece in the Eurozone occurring at that time.  Look at the following chart and see how all these currencies traded in gold were in sync and then in February, things started to get a little crazy.

But while things have been crazy for the hard currencies the U.S. Dollar, despite its current cyclical trend higher, is still in a secular trend lower.  Even the Ruble, Mexican Peso, S. African Rand and Indian Rupee have done better than the U.S. Dollar the past 6 months, despite the recent Dollar rise.

About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534

Disclosure:

Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.

All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.