Gold is Doing Better Than The World's Major Currencies

Jul 12 18:07 2019 Print This Article

Editor's Note: This article was originally published in John Murphy's Market Message on Friday, July 12th at 11:39am ET.

Gold is more than just a commodity. Gold is sometimes also viewed as an alternate currency. When global traders lose confidence in their currency, they often turn to gold as an alternative store of value. Since gold is quoted in dollars, it rises in value when the dollar weakens. That's one way for investors to preserve their wealth when the Fed starts to lower rates and weaken its currency. Gold recently rose to a six-year high on falling U.S. interest rates which have weakened the dollar (aided by a more dovish Fed). So gold is rising in dollar terms. The true hallmark of a bull market in gold, however, is its ability to rise relative to other major currencies. And it's doing just that.

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Stockcharts.com

StockCharts.com was founded in 1999 by Chip Anderson, a 10-year veteran of Microsoft. StockCharts.com is a website that provides online investors with high-quality financial charts for making better investing decisions. StockCharts.com is focused on Technical Analysis - the study of price history via charts. They provide award-winning analysis tools, market commentary from respected analysts like John Murphy and Martin Pring, and a huge collection of educational resources that can help anyone become a better, more informed investor.

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