Check Out the Kitco Gold Index

The folks at Kitco recently began publishing the Kitco Gold Index that prices gold using the same currency weightings as the U.S. Dollar Index - 57.6% Euro, 13.6% Japanese Yen, 11.9% U.K. Pound, 9.1% Canadian Dollar, 4.2% Swedish Krona, and 3.6% Swiss Franc.
It should come as no surprise that, in these terms, the gold price is now almost ten percent below the all-time high reached in February. Recall that, earlier in the year, gold was making new all-time highs in many different currencies around the world while it never really threatened $1,000 an ounce in the U.S.

Comments

[rick12345:]

Well stated. I'm glad that someone brought this up. Pity the Chinese and US dollars' are so manipulated that it won't make an ounce of difference (pardon the pun).

Oct 20 05:36 AM

[fleeing omega:]

Helpful chart to keep things in perspective. Gold is strong but dollar weakness is giving us the turbo effect this time around.

If market finally starts to correct it could (temporarily) boost the dollar and provide better entry point for PMs.

Oct 20 12:34 PM

[chux08:]

Instead of wondering and worrying about what gold is doing, I prefer to see and look at a good old fashioned dollar index chart. It's steady decline is a constant reminder of why I add to my gold stock portfolio and buy more physical metal whenever I see it doing what it seems so likely to keep on doing. This latest work from Kitco should be ignored as it's doing nothing except adding....noise to the situation. Though not quite as much as that loud mouthed, know-it-all, so called analyst of theirs, John Nadler. It's a toss-up which I despise more...

Oct 21 02:00 AM