Gold Measures Dollar Value Not Dollar Index (DXY)
from Wealth Cycles
Over the course of last month, we noticed an occurrence that many in the mainstream media say is not possible. The dollar index and the gold price both went up. We would like to explain this and some of the many misrepresentations about gold. Here is the chart:
The left side (green line & orange arrow) is the dollar index (DXY), and the other data is gold.
Late in June we entered the present period of increasing worry over the global economic reality combined with a lack of conviction over further printing. This mindset is a result of a lack of understanding, combined with consistent and effective hesitance on the part of central bankers to admit to inevitable future expansion.
The reality is that the dollar index and the gold price are related and have inversely correlated over shorter periods, but the fact remains that they are driven by quite different inputs.
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2012-08-16 18:04:47
Source: http://financialsurvivalnetwork.com/2012/08/gold-measures-dollar-value-not-dollar-index-dxy/
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