- New observation : EUR down = Gold up. Old EUR vs Gold positive correlation broken down. If so, Gold vs USD correlation should turn positive.
- Will new relationship sustain? Too early to tell. But if it is correct, then being long Gold = same risk as short EUR. Watch book risk levels! Rebalancing time.
- Central bank reserve switching out of EUR into Gold is real (Gartman) and will likely continue given deep rooted problems within EU.
- Am positive on USD outlook here.
- Gold charts bullish against the other majors.
- Think Gold/USD chart is lagging and will play catch up.
- So, buy Gold vs USD. Finally.
28 April 2010
Gold : Bullish
Labels:
COMMODITIES,
Core,
Gold
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Paid 1164.7 for GCM0.
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