decoupling of gold vs dollar (introduction), page-19

Decoupling of Gold vs USD

Chapter 2 - Very special observations

- follow up -

As everyone can notice, since the 21st of October Gold rised from 1060 to 1170 as of today (more than 10%). Within the same period of time the USD did not devaluate against the Euro, not a single cent!!! Thus, in general terms, one could say that right now we experience a period of total decoupling (which is not true on a dayly basis!!). This makes perfect sense, as will be discussed in Chapter 3. But what happened between the 21. of October and now?

We got another D-Day, perfectly unexpected but detected in advance!!!

The systematic of the previous D-Days in 2005/2007 led me to the assumption that we should have another D-Day at the first of December this year, since we already had one at the 1st of September. As being very concentrated with respect to decoupling, at the 30th of October (which was a Friday), however, I noticed the same behaviour of Gold vs USD as it happened before the last D-Day.

So over the weekend I went to the community here in Germany, telling that on the coming Monday Gold will have a D-Day, starting to rise in Asia and continuing it`s rise more or less constantly until Asia in the next morning. I also told that I would go long on Gold at Monday morning - which I did of cause, since as you can read from your Gold-chart, D-Days are always followed by prolonged periods of price increase.

And indeed - we got another D-Day on that 2nd of November. Isn`t that crazy!!!

Has the systematic changed? Thus, instead of 3 months between D-Days (September to December), has now a period of 2 months been chosen by the "troup" ? Or will we, in addition, this year have another D-Day at the 1st of December? I have no idea, but we will see.

Chapter 3 will deal with the implications of the decoupling with respect to the future of the price of Gold.

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