Monday, October 5, 2009

Gold v. Currencies

Figure 1 is a concept that I have put forward before, and it is gold's performance relative to a basket of 8 currencies.Those currencies are: 1) Australian Dollar; 2) Canadian Dollar; 3) Swiss Franc; 4) Eurodollar; 5) British Pound; 6) Singaporean Dollar; 7) Japanese Yen; 8) US Dollar. This is a weekly chart.

Figure 1. Gold v. Currencies/ weekly

Relative to other currencies, gold continues to outperform. The red vertical line was the first positive reading from the indicator after about 10 months of being negative. This was 10 weeks ago and gold was trading at $960 an ounce.

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