Gold Trading Higher Worldwide YoY Except In US Dollar

According to Sentimentrader, the sentiment towards gold remains very depressed. It currently stands at 30 (on a scale from 0 to 100). Readings below 30 indicate extreme pessimism.

Most investors believe that the gold price is reflecting extreme pessimism. The gold price chart, the “default” one in USD, shows a downtrend since 2011. The gold bears would say “Happy 4th anniversary.”

While it is correct that dollar gold is not looking very constructive on the long term chart, as there is a possibility chart-wise for another breakdown, it should be said that gold in ALL other currencies looks significantly different.

In fact, the price of gold in several major currencies is showing very bullish setups. The chart below shows the gold price in most major currencies since the first week of April 2014 (year-on-year chart).

Note that all gold prices are trading higher, except gold in USD. That means that gold is trading higher everywhere in the world, year-on-year, except for the countries which use the USD.

gold_currencies_April2015

Obviously the monstrous rally in the US dollar since last summer is the reason for the situation we just explained. But gold trading higher worldwide except in countries which use the USD is a constructive sign for gold bulls.

Otherwise stated, gold has to go up during a worldwide currency war.

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