Weekend August 19, 2018
The previous post discussed new lows in many commodity and currency prices. This may be a set up for a reversal as occurred two years ago.
Dollar versus XAU Gold Miners
We cannot know how long the gold line of XAU will go but we can use a ratio chart to determine a likely reversal.
XAU versus US Dollar
Clearly the weekly ratio chart is still falling. Silver is further along in its decline
Silver versus Dollar
The low occurred three years ago in June-July.
Same chart for gold
JNUG
If history repeats JNUG would offer considerable gain.
JNUG Three month
We cannot know when the dollar might top here, but the lead article in the Weekend WSJ has China and the US attempting to settle trade differences. And surely
someone is pointing out to Trump that his Trade Wars are Easy to Win better win something by election day.
Another article describes just what a mess Erdogan has made of Turkey. So any investment there would probably not be a good idea any time soon.
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