Geopolitical shock movements push gold above $ 1,300
Since a $ 1,211.05 low on 11 July, the gold price has continued to trade in a rage of $ 1,200 – 1,300, reaching a 2017 high above $ 1,300 on 29 August.
With the dollar having weakened in concert with the gold price increase, I already said many times earlier that on the longer term since the introduction of the Euro on 1 January 1999, there is no consistent correlation between the dollar and the Euro and the financial crisis of 2008-2009 being an illustrative example.
More recently, over the period from year-end 2013 to date, when the gold price increased by 8% to the current level of $ 1,300, the dollar also strengthened from $ 1.38 to a 14-year high of $ 1.04 on 15 December 2016 or 25% before weakening to the current level of around $ 1.20 against the Euro.
Having appreciated against the Euro since the end of 2016 from a 10-year low of $ 1.58 in March 2008 to an 8-year high of $ 1.04 on 15 December 2016, the recent weakness of the dollar in my view is overstated at today’s dollar/euro ratio of $ 1.20.
To read the full report, please, follow the link: http://www.metalcommodities-ip.com/wp-content/uploads/2015/10/GL_MarketOutlook_August2017.pdf
The report can also be accessed at my website: http://www.metalcommodities-ip.com/category/goldletter/
Marino G. Pieterse, publisher and editor
Goldletter International ● a publication by Metal Commodities Investment Platform, the Netherlands ● Marino G. Pieterse, Publisher and Editor ● Information and investment comments are independently and thoroughly researched and believed correct. No guaranty of absolute accuracy can be given however. ● Investment decisions are fully made for own risk ● tel.: +31-251-828247 ● Chamber of Commerce 58330445 ● www.metalcommodities-ip.com ● e-mail: email@example.com