Green lines mark DXY tops
Red lines mark DXY bottoms
Purple lines mark unconfirmed trend change for DXY .
*Note October 1st US rates topped, which caused Gold to rise with DXY .
Case #1
USA doesn't join the world in negative rates and more QE .
Gold continues to out perform in all currencies except USDs.
Case #2
USA monetary policy joins the world and goes to extremes again. The DXY drops helping out the world and the USD remains the reserve currency. Gold goes higher in USDs, but hits ceiling or falls in all other currencies.
Case #3
Monetary policy has reached its limits and deflation finally can't be stopped, people sell assets to live off.
Case #4
USD is no longer the reserve currency, and Gold priced vs a global basket of currencies and/or a new global currency.
Red lines mark DXY bottoms
Purple lines mark unconfirmed trend change for DXY .
*Note October 1st US rates topped, which caused Gold to rise with DXY .
Case #1
USA doesn't join the world in negative rates and more QE .
Gold continues to out perform in all currencies except USDs.
Case #2
USA monetary policy joins the world and goes to extremes again. The DXY drops helping out the world and the USD remains the reserve currency. Gold goes higher in USDs, but hits ceiling or falls in all other currencies.
Case #3
Monetary policy has reached its limits and deflation finally can't be stopped, people sell assets to live off.
Case #4
USD is no longer the reserve currency, and Gold priced vs a global basket of currencies and/or a new global currency.