I don’t know about you, but I found gold’s performance on Wednesday disappointing. Sure, it gained, but it should have gained MORE considering the pullback in the U.S. dollar. I didn’t expect overhead resistance to kick in until $963, but it might come earlier.
One factor that may be weighing on gold is that traders can clearly see the U.S. dollar is approaching technical support. Take a look at this chart …
This weekly chart of the U.S. dollar Index shows the score. Will it hold at (1), or fall to (2)? To give you some perspective, a year ago we were at (3).
I picked up a nifty chart from Jon Nadler over at Kitco.com. It shows the year-over-year performance of gold against a whole bunch of “hard” investments ….
|
Commodity |
Quarter-on-Quarter % |
Year-on-Year % |
|
|
||
|
Gold (London PM Fix) |
2.0 |
0.5 |
|
Silver |
6.3 |
-21.0 |
|
Palladium |
16.0 |
-46.0 |
|
Platinum |
4.4 |
-43.0 |
|
Aluminium |
18.3 |
-47.4 |
|
Copper |
26.7 |
-41.8 |
|
Lead |
36 |
-0.3 |
|
Nickel |
70.2 |
-26.2 |
|
Tin |
43.4 |
-35.9 |
|
Zinc |
19.6 |
-17.0 |
|
Brent Crude |
46.5 |
-51.6 |
|
S&P GSCI |
25.6 |
-47.8 |
|
S&P GS Agriculture Spot Index |
3.4 |
-35.0 |
|
S&P GS Livestock Spot Index |
-2.4 |
-15.6 |
|
CRB Index |
12.5 |
-24.3 |
|
DJ AIG Index |
11.6 |
-47.4 |
|
Source: Global Insight, Bloomberg |
||
Mr. Nadler writes: “Gold’s performance Q-on-Q was eclipsed by other commodities, by oil, and by equities. The bright picture for bullion comes when one considers what may have happened to a portfolio that did not happen to contain it during the past year. ”
Related Posts
- All Eyes on the Dollar (07/27/09)
- The Dollar and Oil (11/30/09)
- The Dollar’s Long Kiss Goodnight (08/21/09)
- The Wild and The Wooly: Charts of Oil, Bovespa and US Dollar (05/18/09)
- Monday Charts — The Dollar, Gold and Oil (04/13/08)
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