Rookie needing help on gold/dollar relationship | Forex Factory

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Rookie needing help on gold/dollar relationship

  • #1
  • First Post: Oct 11, 2013 1:13am Oct 11, 2013 1:13am
im confused.

when US is not going well, do we long or short XAU USD?
  • #2
  • Oct 11, 2013 3:14am Oct 11, 2013 3:14am
We look at charts not at US.......
  • #3
  • Oct 11, 2013 3:21am Oct 11, 2013 3:21am
Quoting Vitez
We look at charts not at US.......
+1
  • #4
  • Oct 11, 2013 3:27am Oct 11, 2013 3:27am
Quoting breaklimit
im confused. when US is not going well, do we long or short XAU USD?
If your broker has a nice leverage this instrument can be very good to trade!
  • #5
  • Oct 11, 2013 5:08am Oct 11, 2013 5:08am
Quoting breaklimit
im confused. when US is not going well, do we long or short XAU USD?
Theoretically, when USD is falling across the board, Gold will be cheaper in other currencies, this stimulates demand and the demand will push the price of Gold up.
That's the theory, but it doesn't always work that way.
One of the reasons why this doesn't work is because a lot of the Gold that is sold doesn't exist.
If demand exceeds supply, the markets will sell paper gold, basically IOU's.
Please Do Not PM Me With Coding Enquiries
  • #6
  • Last Post: Oct 13, 2013 3:28am Oct 13, 2013 3:28am
[justify]Gold price and USD currency are correlated with each other negatively. However, sometimes the other one move ahead from the other, thus, the other one can be a leading indicator to trade the other one. Its flow is very predictable. In my case, I am using the platform of GLD1881 where I have the chance to predict the movement of gold price.[/justify]
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