(XAUEUR+GOLD)
The theory that CB’s use the value of Gold similar to Brenton Woods. The RL POG theory 1200 x DXY since Jan 2017, the correlation +\- 3% (which expect to break eventually, when IDK?)
Further to that thought is it possible to determine a currency move in the value of Gold vs a commodity move in the value of Gold. Recently since Jan 2017 there have been several instances where the value of $US Gold is above or below the 1200 x DXY. The basic thought being 1 of 3 situations 1 the POG theory has failed (Bullishly or Bearishly) 2 Gold is Overbought or 3 Gold is Oversold.
The main flaws in the correlation 1200 DXY is it’s only 1/2 the equation (or less IMO) and the other it’s going to fail eventually.
This leads to trying to get a more worldly value of Gold is the worldly value of Gold increasing or decreasing? How can the Worldly value of Gold be charted equally weighted relative FIAT? I don’t know, but one of the charts I’m looking at is (XAUEUR + GOLD) in Tradingview. The formula gives an equal weighting to EURO $US is this correct to assume, probably not but it’s a start to refining the theory……
Feel free to blow holes in the theory