GOLD WEAKER THAN US DOLLAR

GOLD/USD INDEX RATIO TO GO LOWER

Gold bugs are looking for the gold price to recover and believe that it is just a matter of time before we witness the demise of the US dollar. Over the past few days our short term comparative performance model has been signalling that we ought to see gold weaken relative to the US dollar which is the opposite scenario to what the gold bugs are wishing for. The ratio's short term direction indicator is declining and the InvesTRAC forecaster is shwoing weakness until June 24. But what does the chart show us?