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/
Kind regards,
Marino G. Pieterse, publisher and editor
Goldletter International
marino.pieterse@metalcommodities-ip.com
Goldletter International â— a publication by Metal Commodities Investment Platform, the Netherlands â— Marino G. Pieterse, Publisher and Editor â— Information and investment comments are independently and thoroughly researched and believed correct. No guaranty of absolute accuracy can be given however. â— Investment decisions are fully made for own risk â— tel.: +31-251-828247 â— Chamber of Commerce 58330445 â— www.metalcommodities-ip.com â— e-mail: marino.pieterse@metalcommodities-ip.com
