Gold / Dollar Ratio Makes the Flip
Yesterday the gold / dollar ratio basis the respective ETF’s completed a top rollover that started back on August, 9, 2011. The peak on the ratio was on August 22, 2011 at 8.74 GLD / UUP. Yesterday on the breakout down for gold the ratio was 7.924. There are a lot of factors playing into this change, some of which are a weakening of commodity prices in general. This has been a rollover that was long expected.
On the other hand the pessimists of the world economic order are still in charge and there is no movement by them to unload their gold. As such this should be considered a move by those holders at the margin at this point.