The markets try their hardest to confound every last trader and I’m sure more than a few have been had trying to play the gold/dollar trade. Normally thiese markets run inverse of each other, meaning that when gold rises, the dollar drops, and vice versa. However, every now and again the unusual occurs and they move in sync. In my experience this most frequently happens when there is a lot of uncertainty about the global economy and nobody really truly knows what to do.
Maybe it has to do with whats going on withGreece and Europe that is causing gold to pop. Maybe the dollar is the strongest of the junk fiat currencies that are out there and investors don’t have anywhere else to turn. Who really knows when it comes to the end of the day. The markets are going to do whatever and it’s our jobs to try and profit from the charts. Fundamentals are completely worthless and tell you nothing about what the markets are going to do.
Trade with what is going on now, and right now we should be focusing on gold and the dollar, although I don’t really trade currencies. One way to trade the dollar in ETF form is UUP. If anybody knows the bearish version of this drop of a comment below. Thx.
