The most bullish sign for gold is how for the first time in many years, gold is now making its largest gains by far priced in U.S. dollars – as the U.S. dollar collapses in purchasing power vs. other fiat currencies. Check out the trailing seven month performance of gold priced in the following fiat currencies: Gold in U.S. Dollars +11.54%, Gold in Canadian Dollars +4.31%, Gold in Swiss Franc +2.77%, Gold in Australian Dollars +2.05%, Gold in Euros -0.37%.
On January 24, 2017, with the Euro at $1.07, Goldman Sachs predicted that it would see parity with the U.S. dollar by year-end 2017. Instead, the Euro has exploded past its 2016 peak of $1.15 and reached a high yesterday of $1.17. Historically, the Euro has had a strong correlation with gold priced in U.S. dollars, making gold very likely to breakout past its 2016 closing high of $1,366.25 per oz in the weeks ahead.
In fact, the Australian Dollar, Canadian Dollar, and Swiss Franc – the three fiat currencies with the strongest correlations to gold – have all exploded past their 2016 highs during the past week!