Tuesday, March 31, 2009

Gold and US Dollar ETFs, Talks of New Intl Reserve Currency.

The Gold and US Dollar ETFs are sitting right around the 50 day ma ahead of the G-20 meeting. $GLD closed just below the 50 day moving average and 90ish support level while $UUP closed just below 50 day resistance. A catalyst could bring some technical breaks which could dictate some trends. It will be interesting to see if Gold/USD trade in tandem or decouple from here (safe haven v. reflation). The pair briefly divorced when Bernanke announced he was going to create $ to buy Treasuries (chart at bottom). Right now, early Tuesday morning, Gold is down 0.11% and the USD is down 0.47%.

Also China and Russia both want to replace the US Dollar as the worlds reserve currency with a basket of currencies and gold as Special Drawing Rights. This talk could have an affect on USD/Gold.

Also look at the 1 year chart of GLD, it is unchanged!

GLD 6 Week Chart

GLD 6 Month Chart

GLD 2 Year Chart

UUP 6 Month Chart

Gold to USD (Stockcharts.com)

I also found an interesting video on Bloomberg featuring Bill Murphy from the Gold Anti-Trust Action Committee. He believes Central Banks are fixing the price of gold. He thinks gold should be much higher relative to inflation.

Recent Gold Forecasts:

Gold's Performance Lackluster; G20 Should Provide a Boost
UPDATE 1-Barclays lifts 2009 gold price view to $940/oz
Goldman Sachs lowers gold forecast to $930/oz
Davies Says Javelin Is Buying Gold on `Dips' Below $900 (Vid)

Paul Walker of GFMS: Gold heading back to $1,300/oz

Gold Going as High as $1,080: BlackRock's Hambro (CNBC)

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