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View Full Version : Dollar Strength vs. Gold Prices


BigOnGold
10-03-2011, 11:27 AM
Just something that I have been noticing..
As our dollar appears to be getting stronger and stronger the price of gold naturally is taking some pretty big hits because of it.
Gold is money worldwide, and yes the price has fallen substantially on a percentage base here in the US.
However the price has not fallen nearly as much percentage wise, say in Australia, Canada, Europe, and others.
All I am saying is that I think we are making a bigger deal out of this current correction than most of the rest of the world is.
I do feel that this flea to the dollar will be short lived though.
Any thoughts on this?

AlbyVA
10-03-2011, 11:41 AM
Just something that I have been noticing..
As our dollar appears to be getting stronger and stronger the price of gold naturally is taking some pretty big hits because of it.
Gold is money worldwide, and yes the price has fallen substantially on a percentage base here in the US.
However the price has not fallen nearly as much percentage wise, say in Australia, Canada, Europe, and others.
All I am saying is that I think we are making a bigger deal out of this current correction than most of the rest of the world is.
I do feel that this flea to the dollar will be short lived though.
Any thoughts on this?



There isn't really any link between the Dollar's Strength or Weakness and
Gold's Valuation at these $1600+ levels. If Gold was trading around $400-$450
you could make the argument. But at $1600/oz, Gold is trading on Speculation
to the Nth degree.

GoldNuggetBug
10-03-2011, 12:07 PM
We will this month! When it break new report!:D :D :D :D

Numisgold
10-03-2011, 12:35 PM
The closest link to gold's price is total debt (public, private, sovereign, hidden, future, etc.) rather than the dollar. Gold's price has not risen 6X over the past 10 yrs because the dollar became 35% weaker based ont he USDX. It rose that far because the debt has multiplied too far over the past 10-30 yrs. Just since 1987 the debt has risen 6X just on what is "officially" reported by the US Govt. Hence gold's price at $1600 makes perfect sense. It's not speculation....but accounting 101.

Numisgold