The real story about the US dollar and gold

Think that gold will make its next dramatic move when the dollar weakens further? Think again. Ed Bugos reveals the true relationship between the currency markets and gold.

I turned bullish on gold in the late '90s, in my former post as a stockbroker.

The collapse of the "strong dollar policy" of that period formed one of the major premises of my case for gold at the time. However, by early 2005, as the currency reached my original target and began bouncing off its long-term lows, I recommended that clients no longer bet against the dollar, because I felt that the dollar would level off. Still, I wrote, gold prices were going to make their biggest move yet. As subsequent events proved, I had that one right.

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