When the Dollar gold price is moving UP like now ($950) the sterling price (£POG) can go sideways, lower or higher depending on the exchange rate. Now that may seem obvious but
it makes a big difference if you are a sterling based investor. I wrote an article for the Technical Analyst magazine on this topic recently, discussing the recent trends in Gold and the GBP/USD exchange rate. In the short term the timing is crucial, but the longer the time horizon the less important the timing issue. £POG has underperformed $POG over 6 months ( -6.9% vs +9.5%) but over 10 years its +260% vs +269%!
Currently most of the Gold moves are dollar inverse moves, so the Sterling price is less volatile than the $Gold price, but all my recent analysis holds true- the technicals have turned bullish and I believe the correction low is in, with the price rally beginning that targets the old high near £700 .
the objective analyser
PS I would like to display more charts but I am having trouble with corrupt files ? Any ideas?
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