In my opinion the index and the charts going with it are NOT giving a true picture of the strength of Gold against not only the $US but also other currencies.

I would appreciate if you check this post on my blog, where I discuss this matter.
Your comments would be very much appreciated.

Sincerely,
Hubert
http://tyheeinvestors.blogspot.com/2010/04/chart-of-day.html

l can only surmise that Brad Kitner has decided that one disingenuous, gold-hating Jon Nadler on the Kitco team is not enough, and has gone ahead and recruited a second disinformation peddling, pro-bankster shill — namely, YOU —- to further badmouth gold for whatever despicable and nefarious purposes Mr. Kitner may have.

As for your and Nadler’s laughably feeble attempts to explain gold’s multi-year rise in terms of just the decline in the US Dollar Index, well, I can only shake my head and observe once again that none are so blind as those who refuse to see —- or who maliciously desire to keep others in the dark.

Alan
PS: Please say “Hello” to your buddy Nadler for me; the coward apparently blocked my emails after I called him out on his innumerable lies and venomous attacks on gold and its advocates — you know, us “Radical Goldbug Extremists”.

Although the USDX is composed of large currencies such as the EUR, GBP, JPY, I would like to know your thoughts about the following:

This Benchmark is composed of some of the most flawed currencies in the world, notably the EUR and GBP, which makes me think why they would measure a currency against a basket of flawed and overweighted ( EUR: 57% ) currencies. I would think they would come up with the strongest basket i.e central banks who are De-basing their currency ( relatively speaking) such as Australia, who have increased the prime rate 5 out of the last 6 session, currently at 4.25%.

I came up with a few index benchmarks, but I’ll just briefly expand on one that only pays attention to what I consider to be the 6 best – a basket including the AUD, CAD accounting for about 40%, KOR and NZD about 32% and SGD and CHF for the rest.

I back tested a chart of gold vs this new indexand it’s inverse correlation is amazing. I’m not a chart or technical person, so I don’t know what to take away from it but one thing I noticed is when gold was on its way to record highs, the inverse correlation is similiar but gold increased far greater than the index decreased. I thought this is representative of speculation entering the market as it soon crashed after topping out.

Any thoughts/input would be appreciated.

Chris