Here's Where Gold Stands When Priced in Multiple Currencies
An analysis of gold priced across multiple international currencies reveals a healthy phase of consolidation as it builds up energy for its next run.
In the United States, gold prices are almost exclusively quoted in U.S. dollars. However, I find it both helpful and insightful to also view gold priced in other currencies, as this approach strips away the influence of dollar fluctuations. Since gold and the dollar typically trade inversely, a strong dollar often leads to weaker gold prices, and vice versa. This perspective is particularly valuable during periods like the past two months, when the dollar’s relentless appreciation against other currencies can create the illusion that gold is performing worse than it really is. Let’s examine gold prices in the world’s major currencies to get a better understanding of where it stands.
Over the past year, gold has exhibited a healthy, orderly growth pattern, climbing steadily through a series of consolidation phases or trading ranges in a stair-step fashion. The current phase appears to follow this constructive trend, further bolstering my optimism. At present, gold is trading within a range between $2,550 and $2,800 in COMEX futures. Within this range, a triangle pattern has emerged, signaling potential for a significant move once it resolves.
The next major movement in gold's price hinges on a decisive breakout from this range, either upward or downward. Given gold’s strong, confirmed uptrend, the probability of an upside breakout is higher, aligning with the continuation of its rally over the past year. However, it’s important to consider all possible outcomes and be prepared for market shifts—even adverse ones.
I closely monitor gold priced in euros because it eliminates the influence of U.S. dollar fluctuations, providing a clearer view of gold’s intrinsic strength. Following a brief pullback after the U.S. presidential election a month ago, gold priced in euros has rebounded strongly and is now trading within a range between €2,500 and €2,600. A decisive close beyond this range in either direction will be key to confirming the next major move. Given gold’s confirmed uptrend, the likelihood of an upside breakout is significantly higher, as trends in motion tend to remain in motion.