Gold ValuationGold Value Index
The Gold Value Index (GVI) is a macro-driven oscillator that estimates the relative value of gold based on real-time movements in the US Dollar Index (DXY) and the 10-Year US Treasury Yield (US10Y). It helps traders contextualize gold’s price within broader macroeconomic pressure — identifying when gold may be over- or undervalued relative to these key drivers.
How It Works – Macro Inputs:
DXY (US Dollar Index): Typically moves inversely to gold. A rising dollar suggests downward pressure on gold value.
US10Y Yield: Higher yields increase the opportunity cost of holding gold, often leading to weaker gold prices.
Both inputs are Z-score normalized and inverted to reflect their typical negative correlation with gold. When combined, they form a single, scaled index from 0 (undervalued) to 100 (overvalued).
Why Use This Tool?
Gold reacts to macro forces as much as technical ones. The GVI blends these inputs into a clear, visual gauge to:
Anticipate mean-reversion setups.
Avoid emotionally-driven trades in extreme macro conditions.
Enhance timing by understanding gold's macro context.
Important Notes:
Data sources include ICEUS:DXY and TVC:US10Y via TradingView.
Code is protected — this is a private, invite-only script.
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