top of page

$GLD - Gold Inverse Dollar: Why Now Could Be the Bottom

  • Gold and the dollar have an inverse relationship. This means that when the dollar goes up, gold tends to go down, and vice versa. This is because gold is seen as a safe-haven asset, and investors tend to flock to gold when they are worried about the economy or the financial markets.

  • The US dollar has been very strong in recent months. This is due to rising interest rates in the United States. As a result, gold prices have fallen sharply.

  • However, there are some signs that the dollar may be peaking. Jerome Powell, the chairman of the US Federal Reserve, has mentioned the possibility of a pause in rate hikes. Additionally, the Fed will eventually have to cut rates in order to stimulate the economy.

  • A weaker dollar would be good for gold prices. This is because gold would become more affordable for overseas buyers. Additionally, a weaker dollar would make gold more attractive as a hedge against inflation.

Why Now Could Be the Bottom for Gold

  • Gold prices have fallen sharply in recent months. This is due to the strong US dollar and rising interest rates. However, there are some signs that the dollar may be peaking and that interest rates may eventually start to fall.

  • If the dollar weakens and interest rates fall, gold prices could rebound sharply. Additionally, gold is a good hedge against inflation, which is expected to remain high in the near future.

What to Do Now

  • If you are interested in investing in gold, now would be a time to keep it on watch. Gold prices are at relatively low levels, and there is potential for a significant rebound in the coming months.

  • However, it is important to remember that gold is a volatile asset. Gold prices can fluctuate wildly in the short term. Therefore, it is important to have a long-term investment horizon when investing in gold.

Gold Equities: $GLD $IAU $GDX

Disclaimer: This is not financial advice. Please do your own research before investing in gold or any other asset. To discuss further join our discord:

29 views0 comments


bottom of page