GLD / SLV vs Dollar Index Long Term.
A key consideration usually in any Asset is the correlations. Precious metals - XAUUSD (gold) / SILVER have a perfect inverse correlation to the dollar index. I will leave it on the reader to plot it. HINT: Plot XAUUSD and COMPARE with (1/DXY).
It's difficult (with all the Fake News) to decipher if Gold will have great demand going further or not. Commodities usually have a 30 year cycle. And in commodity cycles they usually go down for 20 years and then peak in 10 years to complete the 30 year cycle.
Looking at that fundamental we realize that XAUUSD / GOLD should start a secular bull run in 2011+20 yrs = 2031. Which coincidentally is also 30 years since the start of previous Bull run in 2001.
Looking at the other side of it, at DXY - I realized that there are 2 ways to look at it technically - either the J horns which show the start of a secular BEAR market for USD. This would indicate a secular BULL market for GOLD. A flip side to look at is drawing straight lines - I personally lean towards this one as we already are on a log chart. With these blue lines, we see a BULL trend in DXY. A bull trend here means a BEAR trend in GOLD.
If the above is to be true, then GOLD is merely going through Elliott Wave B and will crash down to 800 (bottom of previous wave 4) before picking up again. What do you think ?
It's difficult (with all the Fake News) to decipher if Gold will have great demand going further or not. Commodities usually have a 30 year cycle. And in commodity cycles they usually go down for 20 years and then peak in 10 years to complete the 30 year cycle.
Looking at that fundamental we realize that XAUUSD / GOLD should start a secular bull run in 2011+20 yrs = 2031. Which coincidentally is also 30 years since the start of previous Bull run in 2001.
Looking at the other side of it, at DXY - I realized that there are 2 ways to look at it technically - either the J horns which show the start of a secular BEAR market for USD. This would indicate a secular BULL market for GOLD. A flip side to look at is drawing straight lines - I personally lean towards this one as we already are on a log chart. With these blue lines, we see a BULL trend in DXY. A bull trend here means a BEAR trend in GOLD.
If the above is to be true, then GOLD is merely going through Elliott Wave B and will crash down to 800 (bottom of previous wave 4) before picking up again. What do you think ?
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