It is known that gold is a precious metal that was used alongside silver for barter throughout human history. It is believed that the first use of gold in buying and selling operations was in 643 BC, and this use continued until modern times, but it turned into a cover for the currency in order to determine its value, after it Currencies evolved from coins to paper currencies, including the dollar. But things did not continue this way, as a result of the difficulty of covering currencies in crises and times of need to increase spending.
The story of the dollar’s delinking from gold began after World War I, but it came back and became linked to gold again, then it became a reference for currencies after the signing of the Bretton Woods Agreement in 1944 AD, as a result of the inability of developed countries to cover their currencies with gold, and then their desire to abandon the gold standard. That is, covering it with gold, and since that time the exchange rate of all currencies was linked to the dollar, and thus this agreement allowed other countries to support their currencies with the dollar instead of gold. After the United States fought the Vietnam War during the period (1956 AD - 1975 AD), its need for more dollars increased to cover the costs of the war, and it faced major challenges in that the gold available in the United States was no longer sufficient to cover the printing of more dollars, even though it possessed at that time more than 75 percent of the world's gold, President Nixon announced the discontinuation of covering the dollar with gold. This did not greatly affect the strength of the American economy on the one hand, and OPEC’s decision to link oil prices to the dollar on the other hand, which made the dollar the strongest currency in the world, and occupied a large position as the global monetary reserve currency, as the dollar constitutes more than 60 percent of the world’s reserve currency. Global foreign exchange, followed by the euro with approximately a third of this percentage.
Now we review the results of Labbott's advanced trading indicators with gold against the dollar (XAU-USD).
Frame: daily
The performance was very excellent as it achieved 8 successful deals out of 9
Frame: 15 minutes
It also achieved tremendous performance in the last 16 deals for the index, as it was able to achieve success in 15 deals out of 16.
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