Fiat Majors Vs. Gold In 2018

It’s time for my traditional yearly post about the dynamics of “modern” money (fiat) compared to the “old” or “perpetual” money (gold) in the current year.

Fiat money is represented by 7 currencies: US Dollar (USD) and 6 components of the US Dollar Index (DXY) placed by weight: Euro (EUR), Japanese Yen (JPY), British Pound (GBP), Canadian Dollar (CAD), Swedish kKrona (SEK) and the Swiss Franc (CHF).

Before we get down to the results of 2018, let us see how did you see the future back at the end of December 2017.

fiat

The most of you bet that the king currency (USD) would beat all the rest in 2018. Your second favorite is the single currency (EUR), which is the top rival of USD.

There could be at least two reasons for this ballot result a year ago. The first one is more obvious and is coming from the country distribution of the INO.com web traffic as more than half of it comes from the United States. The other reason is also logical as the US Dollar was the top loser last year with -10% and you could bet on it using the knowledge about the “Pendulum effect”, which pushes laggards to the top.

Now let’s move on to the results of 2018. Continue reading "Fiat Majors Vs. Gold In 2018"

Top Currencies Vs. Gold: Which Fiat Could Beat Gold in 2017?

Aibek Burabayev - INO.com Contributor - Metals


This is a traditional post with a performance review of top currencies versus gold at the end of the year.

The fiat money is represented by 7 currencies: US Dollar (USD) and 6 components of the US Dollar Index (DXY) placed by weight: Euro (EUR), Japanese yen (JPY), British Pound (GBP), Canadian Dollar (CAD), Swedish Krona (SEK) and the Swiss Franc (CHF).

Chart 1. Year-To-Date Dynamics Of Top 7 Currencies Versus Gold: The Only Winner

Gold vs. World Currencies
Diagram by Aibek Burabayev; Source: tradingview.com

This year the gold was almost as strong as last year compared to the top currencies and only one rival could escape from its death grip. The Euro was also very strong this year as the Euro Index scored a hefty 7.26% gain against its peers (USD, GBP, JPY, CHF). It helped the euro to outweigh gold by 2%. Last year the EUR finished on 5th place.

Below is the full ranking for Y2017 with the Y2016 places in the brackets. Continue reading "Top Currencies Vs. Gold: Which Fiat Could Beat Gold in 2017?"

Top Fiat Money Vs. Gold: What Shines Brighter in 2016?

Aibek Burabayev - INO.com Contributor - Metals


It becomes a tradition to post a performance review of the top currencies vs. gold at the beginning of the new year.

Fiat money is represented by 7 currencies: The US dollar (USD) and 6 components of the US dollar index (DXY) placed by weight: euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK) and the Swiss franc (CHF).

Chart 1. Year-To-Date Dynamics Of Top 7 Currencies Versus Gold: No Comment

Chart 1. Year-To-Date Dynamics Of Top 7 Currencies Versus Gold
Diagram by Aibek Burabayev; Source: tradingview.com

The Euronews agency has a special rubric called “No comment” where they show video news without commentary as the picture speaks for itself when something dramatic, awful or really amazing is shown. I think the above diagram also speaks for itself and it shows the drama where the gold just smashed all of the fiat currencies as none of them could escape. None! Continue reading "Top Fiat Money Vs. Gold: What Shines Brighter in 2016?"

Top Forex Pairs VS. Gold: Another One Bites The Dust

Aibek Burabayev - INO.com Contributor - Metals


A year ago I wrote a post to compare the top currencies dynamics against Gold inside of the year. Today I want to repeat the experiment to see which one could beat the safe haven and which one couldn't. This time, you will see a modified version of the chart where the inverse metal crosses show not Gold's (last year version), but the currencies' dynamics for easier eye perception.

To remind you of the short list, there are seven currencies compared: US dollar (USD) and 6 components of the US dollar index placed by weight: Euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK) and the Swiss franc (CHF). Continue reading "Top Forex Pairs VS. Gold: Another One Bites The Dust"

Fed At Odds With Markets Over Oil

Lior Alkalay - INO.com Contributor - Forex


At long last, the market finally got their long awaited Federal Reserve rate increase. Yesterday, the Fed hiked the Fed Funds rate by 25 basis points, from 0.25% to 0.5%. The Fed's famously watched "dot plot" revealed that most members expect at least four rate hikes in 2016. And investors? If interest rate swaps are any indication, then investors expect no more than two rate hikes next year.

So who is right then? The Fed? Or the market? Continue reading "Fed At Odds With Markets Over Oil"