Feb 22 2009
Gold Stock history
The U.S. dollar against the major impact of the gold market has two aspects, one dollar is the international gold market price of the currency, thus showing a negative correlation with the gold. Assuming no changes in the value of gold itself, the dollar fell, then gold price on the performance up. Another aspect of U.S. dollar assets are gold as an alternative investment instruments. Gold history in fact before 2005 years, the price of gold rising dollar is a major factor in the sharp decline for three consecutive years.
From nearly 30 years of historical data statistics, the U.S. dollar and gold maintained approximately 80% of the negative correlation between, and from nearly a decade of data, the following chart, 1995-2003 between the U.S. dollar and gold correlation diagram, the U.S. dollar and gold are getting close to -1%. Therefore, our analysis of price movements, the dollar exchange rate movements are one important reference.
Usually our analysis tool for the U.S. dollar U.S. dollar index, the dollar index is a comprehensive reflection of the dollar in international foreign exchange market exchange rate indicators, used to measure the U.S. dollar against a basket of currencies of the degree of exchange rate changes. It by calculating the dollar and a basket of currencies of selected changes in the integrated rate, to measure the extent of dollar strength, which indirectly reflects the competitiveness of U.S. exports and changes in import costs. If the dollar index fell on the U.S. dollar against other major currencies. U.S. index futures based on the calculation of the principle of the world’s major countries and the United States between the volume of trade settlement, based on a weighted manner to calculate the overall strength of the extent of USD 100 for the strength of the line. In January 1, 1999 introduction of the euro, the futures contracts have been adjusted subject matter, from dozens of countries was reduced to six countries, the euro has become the most important weight biggest currency, its proportion weight reached 57.6 percent, therefore, the volatility of euro strength for the dollar index hit.
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Dollar index weights:
EUR 57.6
13.6 yen
9.1 Canadian dollars
SEK 4.2
USDX dollar index are in March 1973 with reference to the six currencies against the U.S. dollar exchange rate changes in the weighted geometric mean values calculated. To 100.00 as the benchmark to measure its value. 105.50 quotations are from March 1973, its value increased by 5.50%.
http://goldteeths.blogspot.com/2008/11/stock-history.html
