Gold Bears Must be Disappointed

Prominent gold bears like Goldman Sachs’ head of commodities research Jeffrey Currie just about have to be disappointed with the action in gold metal recently.   Consider the chart below for reference. 

USDX w GLD

What that chart is showing us is that since early July the U.S. Dollar Index (DXY) has blasted a big 400 basis points higher,  a huge move for a currency index, but for the period gold, represented in the chart by its proxy, GLD, has only drifted 4.7 percent lower. 

We mention it because Mr. Currie made the rounds on financial TV again calling for $1050 gold, a call he has been making since at least March of 2013 (well over a year).   We can view the latest CNBC visit in the video segment below. 

Traders and gamers are still waiting for the Currie team’s unfortunately timed call for $200 oil in 2008, calling then for a 1970s style crisis event just prior to a collapse in commodity prices as traders scrambled to find liquidity anywhere then.  To be fair the Goldman team was laughed at when they predicted $100 oil a bit earlier, which, of course, was right on.  It was the “press” up to $200 that now looks (and was) over the top. 

Now more than a year stale, Currie’s call for $1050 gold is beginning to look a lot like another “press” instead of a “call.”  With the USDX screaming 400 basis points higher but gold unable (so far) to break support, it doesn’t look good right now for that aging call (or press) by the Goldman gold man for $1050 gold. 

Gold