Thursday, March 13, 2008

The Dollar, The Euro and Gold

Bespoke had a couple posts that pretty much give us the rear view mirror, magnified.
First, from Gisele and Jay-Z Need Not Apply Here, a trend appears to be emerging:


And from Gold/Dollar Ratio Has Gone Parabolic:

Below we highlight the Gold/Dollar ratio since 1975. This divides the US Dollar index (DXY) into the price of an ounce of Gold. As shown, recently we took out the prior highs of the ratio made in January 1980, and things have now gone completely parabolic. Things don't stay like this forever, and those who have recently joined the party and entered the long Gold/short Dollar trade should tread very carefully....CHART

[emphasis ours]