Gold Rallying In US Dollars, Update on Gold/S&P, Gold/USD, USD/SPX, USDX

It's been an interesting week.  If the US Dollar Index (Chart 2) breaks support and tests the uptrend (79.5), 50DMA (78.84) or floor support (78.5), Gold priced in US Dollars (Chart 1) could test $1,150 aka the January highs.  In the first chart you can see it pierced through a downtrend resistance level and is riding the 50 and 100 day moving average.  Gold in US Dollars is currently trading at 1,134.  1,150 is an important resistance level and will prove if the mini inverse head and shoulders bottom has legs.  If that level is broken with momentum it could possibly be a decent hedged long to test the ultimate highs and beyond (like I said earlier 2/21).

Regarding Gold v. S&P (Chart 3), they've been dancing since the beginning of the year trading between .99-1.02.  When gold broke out at the end of 2009 (Oct-Dec) the Gold/SPX ratio went from .95-1.10.  Por último, look at the USD/SPX ratio (Chart 4).  With the recent rally in the S&P and a stagnant Dollar, the USD/SPX ratio is now testing the 50 day moving average and December support level.  If Marc Faber is right that the Euro gets squeezed to 1.40, that will support the USDX correction trade.

A bunch of decisions need to be made in the overall market. I'm waiting for a big catalyst even if technical.  Btw:  Greece braces for deeper spending cuts, as EU tightlipped on rescue plan (AP) ("We are today in a state of war in front of negative scenarios for our country," Prime Minister George Papandreou said."). 

Gold Spot/US Dollar (courtesy of fxstreet.com)


US Dollar Index (courtesy of stockcharts.com)


Gold/SPX Ratio


US Dollar/SPX Ratio

Comments

  1. Zix is 10000 cents still but how much cent is nominally is to be decided in value. Shall kopjejka become cent it is question of future. Now I arrived on coincidency that one zix is 10000 cents of any currency, 10000 such cents in value of today's dollars are world's average salaries, and my individual sovereignty card become same value of 10000 dollars per year (rised from 8642$/Y) in new cents worth of one dollar. If USA wage is 20.83$/H in 42H/W * 4*12 is 42000 $ per year average american earnings in salaries. Same is USA GDP figures per person a year. Ok, USA has 4 times advantage and such consequently is the leverage. But when god Zikalkis step forward and give to world average salary10000 $ plus of 10000$ it'll pull up this gap to 1 : 2 which is morally more sustainable.Thank me later, but now you must untangle me as I entered in inextricable net of numbers and ideas. However, new we need, the start more just, more moral, more sustainable, more bold.

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  2. In dependence of the context, gold is firmness for poor as the churches are making coverage of edifices with gold to cover wooden priests or inefficacies, inconsistences, inmaturities and incompetence etc. But in this contest of my money called Zix as new world's reserve currency, gold could be used too as the standard value as it was ago. Maybe a part of issuance of zixes may be in gold but always in proportions consistent with value agreed on the word summit for my recognition as sovereign living god compromised in our principles with strong consensus achieved among all worlds institutions and their leaders and me as the charisma which is initiating the unification of the civilisation for harmonious prosperity and faster and larger development.

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