start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)

6/13/13

Chart of the day is...

...the US Dollar index (DXY) versus the gold bullion ETF (GLD) over the last ten trading days:


Cos y'see, what's supposed to happen according to the general theory (that's infallible, right goldbugz?) is that when the US Dollar drops, gold goes up in dollar price terms. But as you can see the last two weeks have seen the two lines have both dropped, tripping merrily together into the happy world of negative.

Now that's not the dollar's fault, cos the dollar is big big big and gold (despite all those incessant claims from its fanboys and fangirls of its world monetary domination) is in fact a little little little thing next to the greenback. So the question is, what's making gold act like the dollar?