Gold And U.S. Dollar, Buffett, Trump, – Nothing Has Changed Gold Price Historical Chart Euro

How Much Is An Ounce Of Platinum?

Is Gold Price On Verge Of A Bottom, See For Yourself

Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors

Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future”

More Signs That the Stock Market Will Rally Until 2019

Gold And U.S. Dollar, Buffett, Trump, – Nothing Has Changed

S&P, Russell 2000, and NASDAQ all made new highs together. What’s Next

What Are the Penalties for Not Having Business Insurance?

What’s Next for Stocks When the Yield Curve Inverts

Cadbury Easy to Win Premier League Match Football Tickets and 1 Million Prizes!

Financial Markets Status: Precious Metals, Commodities, US & Global Stocks

Trade War to Continue, Global Debt Default & Higher Interest Rates Unavoidable

S&P and NASDAQ are Up 5 Consecutive Months. Russell is up 6 Months. What’s Next

Combining Andrews and Elliott Wave to find the Third Wave

Stock Market Just Below New Record Highs, Which Direction Next?

Things You Should Know About the Last Year of this Stocks Bull Market

Mattress Guides to Help You Choose Your Next Mattress

How China’s Mobile Ecosystems Are Making Banks Obsolete

Is The 50-year Gold Mining Bear Market Coming To An End?

Is Gold Price On Verge Of A Bottom, See For Yourself

Gold COT Data at Extreme Levels, which suggests Recovery Should Start Soon

Historical Repetition in Gold and Silver Precious Metals Arena

Rent Your House: The Ultimate US Real Estate Strategy

Gold Price Historical Chart Euro ,000+

Gold And U.S. Dollar, Buffett, Trump, – Nothing Has Changed

“Even in the U.S., where the wish for a stable currency is strong, the dollar has fallen a staggering 86% in value since 1965, when I took over management of Berkshire…” — Warren Buffett Feb2012

During that same period (1965 – 2012) the price of gold increased from $35.00 per ounce to more than $1800.00 per ounce – a whopping 5000%. 

Seven years ago this month (August 2011), the price of gold peaked at $1879.00 per ounce, and has since fallen 30% to approximately $1200.00 per ounce currently. That drop in price is the inverse reflection of the U.S dollar’s temporary strength and stability, which is

This interactive chart compares the daily LBMA fix gold price with the daily closing price for the broad trade-weighted U.S. dollar index over the last 10 years.

Looking at the most recent activity, the U.S. dollar is currently up 10% from its low point earlier this year in January, whereas the price of gold has declined 14% from its corresponding high point that same month.

(This chart of historical data shows the broad price-adjusted U.S. dollar index over the past 43 years as published by the Federal Reserve

When gold peaked in January 1980 at $850.00 per ounce, the U.S. dollar had just begun to move upwards from its decade-long decline, eventually reaching its ultimate high of 128 five years later. A secondary peak at 113 in February 2002 occurred just after the price of gold reached its nadir at $250.00 per ounce. The subsequent decline of 30% in the U.S. dollar resulted in a seven-fold increase in gold’s price.

Again we see the same pattern over and over. And while some may get tired of hearing it, they apparently haven’t gotten the message: “the price of gold is an inverse reflection of the fluctuating value of the U.S. dollar – nothing more, nothing less, nothing else” …Kelsey Williams

On January 20th, 2017 Donald Trump was inaugurated as the 45th President of The United States of America. The price of gold was $1209.00 per ounce.

Today, August 27th, 2018, the price of gold is $1209.00 per ounce.  And the U.S. dollar index stands currently at 125; exactly where it was on January 30th, 2017 – ten short days after President Trump’s inauguration.

With all that has happened in the past two years, and with all that was supposed to send gold infinitely higher, nothing has changed.

Those who were insisting that “President Trump’s election is good for gold” are now telling us that his trade war is good for gold. And that his calls for a weaker U.S. dollar will lead to an impending collapse of the U.S. dollar; which will lead to much higher gold prices. Gold Price Historical Chart Euro

Calls for gold’s price to ‘soar’ to $5,000, $6,000, $10,000 per ounce abound. And the adamancy of these predictions is even stronger after gold’s most recent drop.

And, too, “fundamentals for the miners have greatly improved and the gap between them and the price of gold will soon narrow significantly”.  It has to, right?

If you consider yourself bullish on gold (for most people, this means only one thing – they expect the price of gold to go higher; a lot higher), there is no shortage of fundamentals to get you excited.

Anything that someone suggests or implies will cause gold’s price to rise, is now a fundamental for gold. These include: interest rates, the economy, the Euro or Yuan or Yen, Brexit, trade wars, conspiracies, social unrest, terrorism, etc.

Analysis of gold,as it is proffered by most of those associated with the yellow metal, is misleading and harmful; and it generates unrealistic expectations.

Gold’s value is not determined by world events, political turmoil, or industrial demand. If you have in mind a particular scenario or series of events that you think are critical or important with respect to gold, then you need to reconsider them carefully as to what specifically would be the effect on the U.S. dollar. Nothing else matters.

The U.S. dollar is the world’s reserve currency and gold is priced in U.S. dollars. If the U.S. dollar continues to strengthen, then gold prices in US dollars will continue to decline. If the US dollar weakens, then gold’s price in US dollars will go up. It can’t be any other way. Gold Price Historical Chart Euro

INFLATION, WHAT IT IS, WHAT IT ISN’T, AND WHO’S RESPONSIBLE FOR IT

Kelsey Williams is a retired financial professional living in Southern Utah.  His website, Kelsey’s Gold Facts, contains self-authored articles written for the purpose of educating others about Gold within an historical context.

© 2018 Copyright Kelsey Williams- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Financial Markets Analysis & Forecasting online publication.

Only logged in users are allowed to post comments.

Financial Markets Forecasting & Analysis web-site.

(c) 2005-2018 MarketOracle.co.uk (Market Oracle Ltd)

- Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted.

Any and all information provided within the web-site, is for general information purposes only

and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use.

From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.