Yen, Gold, and the Perfect Desert Storm
November 27, 2009 by Seeking Alpha
Filed under Tips
Original Article from Seeking Alpha Dollar Currencies
Ashraf Laidi submits:
Gold not so tough against the others
One striking development involving gold is the failure to regain its previous record highs against the robust yen and Aussie. Most importantly this week, gold did reach new highs against the euro, sterling and Swiss franc, yet will ultimately fail to close the week above those highs. The fact that gold was unable to close the week at new highs against these currencies, simultaneously with the unfolding global market sell-off, highlights the importance of gauging the secular momentum of the precious metal beyond in USD terms currency. Therefore, as gold steals the headlines via its performance against USD, it is helpful to scrutinize its performance against more robust assets (currencies) for a truer reflection of its ascent.
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