Tuesday, November 20, 2012

Pole Reversal

As a respected analyst from the sell-side arrives at the same conclusion we have long benefited from understanding - the downstream benefactors of a deflating commodity super-cycle appear increasingly vulnerable. Namely, as the US dollar index extends itself from our proposed secular low, on the literal inverse side of the world and market - the commodity currency of the Australian dollar continues to trace out the edges of a prospective secular top.

Below is a weekly comparative of the US dollar's secular top between 2000 and 2003 - compared to the Aussie since late 2010. 
So goes the Aussie and the US dollar - so goes gold.