Gold Tracks Purchasing Power

YES, gold does track your purchasing power over LONG PERIODS of time.

It tracks the inflation ADJUSTED US Dollar more accurately than it does either the US Dollar OR Inflation.

It is a better way to understand macro tides which move the price of gold.

While there are periods of lower/diminishing correlation... you should really keep your eye on what has been happening now!

Gold has been in a period of INCREASING, statistically significative correlation with Purchasing Power.

WHAT DOES THIS MEAN?

Well, when gold sniffs out the end of the current rally for US Dollar versus Inflation, then it will tell us on its price chart.

You might want to reshare this post and maybe pin it.

I will.

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Below is why I did this post.

What makes gold move?

I see soo many focus too much on either inflation or the US Dollar.

They are often wrong for 2 reasons:

1- Gold tracks neither per say, but inflation adjusted US Dollar (purchasing power).
2- Gold has a tendency to move 3 to 6 months ahead of the next move in purchasing power.

Use charts for unbiased, objective evidence gathering.

Forget headline news, stories, and narratives.


#gold #usdollar #dxy #purchasingpower #inflation