Gold Making Largest Gains Priced in US Dollars

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!