Impending US$ Peak Should be Catalyst for Gold

Gold has performed very well under the circumstances of declining inflation and a surging US$ index. Since 2014 the US$ index is up nearly 18% while Gold is up 3%. Since Gold’s November low the US$ index is up over 10%. Had we known that at the time, we’d have thought Gold would be headed for $1000 and not the $1300 it recently hit. At present, the US$ index appears ripe for a correction or major pause in its uptrend. Given that Gold is priced in US$ and that Gold has shown strength in real terms, sustained US$ weakness could be a major boon for Gold and precious metals as a whole.

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