GOLD however, which has been the favorite for safe havens for years, has taken the back seat recently and has retreated back to its recent MAJOR SUPPORT at the 1530 area and is now in the OVERSOLD territory.
Overbought means , it is highly likely to reverse in direction or go down. Oversold is the other way around... ITS POTENTIAL TO GO UP IS HIGHER....if..... : )
The big question: WHERE WOULD THESE TWO HAVENS GO in 2012?!
SHORT TERM: USDollar looks to be the winner in the very short term. The single biggest catalyst: The EURO and ALL the Currencies tied to it and eventually ALL the currencies tied to the USDollar.
Click here to see EUR , GBP & AUD Positive Correlations
LONG TERM: Looking at the MONTHLY chart of GOLD, and its very long track record of stability , this trader still favors this precious metal.
Click here for GOLD & DOW30 Index correlations...
Make a long story short, when EUR/USD,UK100, GBP/USD, AUD/USD, etc. go down AND USD/JPY goes up , USDollar normally goes up , Gold goes down . And the reverse is true.
When the Dow30 (Dow Jones Index) , S&P500 Index move up, GOLD normally goes up!!!
But..... these correlations ARE NOT PERMANENT but for the most part they hold true.
See you all next year!!!! Happy New Year!!!!
Joe Joson
USA
blackhawk74@yahoo.com
LONG TERM: Looking at the MONTHLY chart of GOLD, and its very long track record of stability , this trader still favors this precious metal.
Click here for GOLD & DOW30 Index correlations...
Make a long story short, when EUR/USD,UK100, GBP/USD, AUD/USD, etc. go down AND USD/JPY goes up , USDollar normally goes up , Gold goes down . And the reverse is true.
When the Dow30 (Dow Jones Index) , S&P500 Index move up, GOLD normally goes up!!!
But..... these correlations ARE NOT PERMANENT but for the most part they hold true.
See you all next year!!!! Happy New Year!!!!
Joe Joson
USA
blackhawk74@yahoo.com
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