"Everything you need to know about gold"
When the gold price declines or doesn’t go up according to expectations, analysts and investors begin looking for explanations. As the price drops further, claims are made that gold is undervalued.
Gold is not undervalued; and we might see further, larger price declines very soon.
DOWNSIDE POSSIBILITIES FOR GOLD PRICE
There is a correlation of gold’s increasing price relative to the declining value of the US dollar. The chart (source for all charts) below shows this inverse relationship clearly…
Over time, as the US dollar continues to lose value, the price of gold continues to increase. Seemingly, it would be worthwhile to just buy gold and wait for the inevitable decline of the dollar.
It is not that simple. Here is the same chart with a long-term uptrend line added…