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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