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Gold bars are displayed at bullion house in Mumbai.
Gold bars are displayed at bullion house in Mumbai.
(ARKO DATTA/REUTERS)

SCOTT BARLOW

Gold breaks out, but for how long?

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Changes in the size of the “end is nigh” sandwich-board sign crowd – the percentage of the investing public concerned that the global financial system was about to implode – have been the primary drivers of the gold price over the past five years. Unfortunately, the Census Board doesn’t quantify their ranks so we’re left with technical analysis (as a way to measure sentiment), and the value of the trade weighted U.S. dollar (DXY) as the best tangible means to gauge whether gold is expensive or not.