swissaustrian
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The strong dollar has played a part in keeping gold hovering arround $1200. Gold and the dollar are inversely correlated:
Stronger dollar -> weaker gold / Weaker dollar -> stronger gold
Most people only follow golds performance in USD. Since gold is a currency, prices in other fiat currencies are important as well, too.
You can check gold charts in different currencies here:
http://goldprice.org/gold-price-chart.html
Yesterday, gold broke above 1000 Euros for the first time in 18 months and above 1200 Swiss Francs as well. Both prices are connected since the SNB has put a floor under EUR/CHF at 1.20 which is where the pair currently trades. Gold in EUR and CHF is rising in anticipation of ECB QE and a possible exit of Greece from the Eurozone ("Grexit"). The EUR 1000 level was a crucial technical resistance for gold. It was broken yesterday.
Gold in Japanese Yen (JPY) is even close to breaking the 145000 mark which is also a major technical resistance. Above that there is only the 155000 mark before the all time highs of the year 1980 at 167000 JPY are the last target to be taken out.
How can you profit from the performance of gold in other fiat currencies being an American?
Hedge funds have done pair trades, ie going long gold and shorting the foreign currency. For example they have shorted the JPY against USD and went long gold in USD. These are two separate trades, but the losses on the gold/usd trade were more than offset by the gains on the short usd/jpy trade. The net performance of the two trades can be seen in the gold/jpy chart. It is basicly going long gold in a foreign currency.
Here is Kyle Bass plugging his pair trade:
http://www.gotgoldreport.com/2013/03/kyle-bass-sell-yen-buy-gold-and-go-to-sleep-.html
I would not go long gold in JPY right now, but it certainly looks interesting in EUR and CHF to me right now.
Stronger dollar -> weaker gold / Weaker dollar -> stronger gold
Most people only follow golds performance in USD. Since gold is a currency, prices in other fiat currencies are important as well, too.
You can check gold charts in different currencies here:
http://goldprice.org/gold-price-chart.html
Yesterday, gold broke above 1000 Euros for the first time in 18 months and above 1200 Swiss Francs as well. Both prices are connected since the SNB has put a floor under EUR/CHF at 1.20 which is where the pair currently trades. Gold in EUR and CHF is rising in anticipation of ECB QE and a possible exit of Greece from the Eurozone ("Grexit"). The EUR 1000 level was a crucial technical resistance for gold. It was broken yesterday.
Gold in Japanese Yen (JPY) is even close to breaking the 145000 mark which is also a major technical resistance. Above that there is only the 155000 mark before the all time highs of the year 1980 at 167000 JPY are the last target to be taken out.
How can you profit from the performance of gold in other fiat currencies being an American?
Hedge funds have done pair trades, ie going long gold and shorting the foreign currency. For example they have shorted the JPY against USD and went long gold in USD. These are two separate trades, but the losses on the gold/usd trade were more than offset by the gains on the short usd/jpy trade. The net performance of the two trades can be seen in the gold/jpy chart. It is basicly going long gold in a foreign currency.
Here is Kyle Bass plugging his pair trade:
http://www.gotgoldreport.com/2013/03/kyle-bass-sell-yen-buy-gold-and-go-to-sleep-.html
I would not go long gold in JPY right now, but it certainly looks interesting in EUR and CHF to me right now.