Gold-To-Dollar Ratio Back To July 2008 Levels, On Surging Au, Collapsing USD
The recent run up in gold, coupled with the decline in the dollar (via the DXY) has raised the GLD/DXY ratio to July 2008 levels, with just under 1.5x points left for Gold to hit multi-year relative highs. With gold seen as not only an inflation hedge, but a systemic collapse safe haven, could the run up in gold have more than just inflationary implications? With the dollar safe haven status out of the window, it does, in fact, only leave gold as the only TEOTWAWKI hedge. At flat dollar levels, look for gold to test the $1050 level relatively soon.
In the meantime, stocks are blissfully unaware of anything except how many robots are chasing after AIG, FNm and FRE.
In actual news, maybe this has something to do with the move in gold. Seems gold repatriation is becoming a dominant topic for virtually every sovereign. Of course, things like this happen every day for no reason... whatsoever.