Tuesday, April 11, 2006

Gold , XAU and Silver , XAG Technical update

Gold Silver ratio (XAU/XAG) = ~ 47.45, Dow / Gold (INDU/XAU)= ~18.69, Gold / Crude oil (XAU/WTIC) = ~8.60.

Crude Oil Chart here

Julian D.W. Phillips (The Gold Forecaster)has published 3 parts observation under the name : Gold & Oil - 1971 Until the Future.


"As it becomes clearer that the $ hegemony is going too far, as record after record U.S. Trade Deficits are published, most nations and wealthy individuals are seeking to diversify away from the $. It is clear that despite any present or future exchange rate management [and the Fed has just prepared itself to interfere on the foreign exchanges of the world] and the reality that oil is priced in the $ the exchange rate value of the $ is suspect and likely to fall, eventually.

But where are do you run to from the $? All the world’s other currencies are dependent on the global monetary system of which the $ is the foundation on which other currencies rely, especially the Euro [despite its design as a reserve currency]. Each currency has its place in the currency world and has an enormous dependency on the $. We even suspect that those controlling the Euro do so in tandem with the $, so as to keep the relationship between the two largest global currencies completely stable [as can be seen in the last year’s performance of the $:Euro]. So diversifying out into another currency would hardly solve the problem, would it? In the face of a fall from power of the $, all currencies would follow, like Pilot fish stick to sharks, down to the depths."

Part 3: The Future of Gold and the Devaluation of the Dollar

Gold , XAU EURO Chart

Gold , XAU USD Chart

Silver , XAG  USD Chart


Anonymous said...


Your daily charts are impressive.

For those of a TA-orientation, could you add in the 20 DMA and 50 DMA for gold/silver into the charts also?

This would be useful for guiding when to come in to buy gold/silver at its dips. Thanks.

Anonymous said...

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