BarroMetrics Views: An Interesting Gold Chart
Here is an interesting chart that I saw on Bloomberg‘s.
Figure 1 shows Gold from two perspectives. The bottom section is a 3-month line chart, 1974 to 2012; the top section shows gold prices 1913 to 2012 as standard deviations from the mean. From 1997 to 2001, Gold prices were around the mean.
The argument here is the US$1,800.00 high represents a 4 std from its mean price. It’s argued that this suggest Gold will head south from here, especially since US interest rates are about to head north.
I have no views either way – but it is an interesting take.
FIGURE 1 Gold