Currencies and their relationship with precious metals

Discussion in 'Economics' started by morganist, Jul 18, 2011.

  1. It is well noted that the US dollar has a negative relationship with silver that is 70 percent. I have been watching the relationship of the Euro and gold it seems to correlate in the same way the dollar and silver do. Perhaps the Euro is more sensitive to gold movements or vice versa and the the Dollar is more sensitive to silver.

    It might be worth investigating whether there is a negative correlation between the Euro and the percent of the correlation to esitmate future Euro/gold prices for potential trades. The recent rise in gold related to the fear of the Euro, silver did not rise as much. In America I notice the opposite, does this suggest my theory is right?