Tag Archives: US dollar index

The seasonal trends of the U.S. dollar are probably important for you as an investor in stocks or bonds so let's take a look at the seasonal pattern of the U.S. Dollar Index and find out why it typically decline at the end of the year.

The bull market in gold has been aided and abetted to a large degree by the weakness in the US dollar but, seen through the lenses of other currencies, the gold bull has been much less robust. Words: 956

Swings in the US dollar have no long-term impact in the price of gold and gold isn't an inflation hedge either so what is it then? Read on!

...When the USD starts to rise many assume that this is negative for paper gold ETFs such as GLD as well as physical gold. I'm sure you have heard it before, if the USD goes up then gold goes down, and vice versa...but, in reality, this "rule of thumb" isn't the case and, in actuality, it would be impossible for the USD and gold to trade inversely with each other. Let me explain.

Something is clearly out of whack. Gold has failed to push higher against the backdrop of a lower U.S. dollar for the first time in over a decade and, with pressure on the dollar increasing, the failure of support could ignite a massive decline. Is gold preparing to launch this time?

Nearly all markets except the dollar reacted rather badly to Ben Bernanke's news conference – even though it actually contained no news - Treasury yields soared, stocks were whacked, and so was gold. While the charts certainly don't look good in the short term, though, it should be pointed out though that investors with a longer time horizon probably won't make a big mistake by buying on weakness. That being said, however, in the short term all the tentative evidence that a bottoming process may be under way has by now been eradicated. Below are a number of charts illustrating the situation.

What is developing in the markets is not the beginning of another leg down in gold, but a second chance to get positioned for what should be a very profitable intermediate degree rally over the next 2-3 months. [Let me explain further with a number of charts to support my position.] Words: 460

The election is now behind us and I pray our elected officials can come together and make quality decisions to move this country forward in a positive direction. [That being said, how the U.S. Dollar Index reacts over the short term] is going to be very important for portfolio construction in the weeks and months ahead! [Let's take a look at what the following charts say on the subject.] Words: 225

Traders have created a rather large "fish mouth spread pattern"again in the US dollar Index. In the past this fish mouth spread was spot on in suggesting that a Dollar rally was close at hand...Will the results be any different this time?

The U.S. Dollar Index is signaling that this rally might have a bit more room to run. [Let me explain.] Words: 400