It seems that the markets are saying that the old scenario of gold moving opposite to the dollar, which dominated much of the last decade, has changed. Now the scenario is that all paper money is collapsing against gold. And for the past 4 months, the dollar’s rise against the euro has been accompanied by a nice gain in gold.
The long term trend is so much easier to play than the short. Look at the trend in this gold bull market. Surely this trend has been our friend. All commodity markets, by the way, are not like this. Each has its own peculiarities, which must be learned by experience. But gold is a good chart commodity. It is produced all over the world, and it is purchased all over the world. Many people, each day, are buying it and selling it.
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