Gold Correlation

Discussion in 'Metal Futures' started by xyannix, Sep 7, 2010.

  1. xyannix

    xyannix

    What do you watch for when trading Gold?

    Are you looking for it to move in line with Oil, Bonds, the Euro
     
  2. xyannix

    xyannix

    For example: The move this morning at 8:30, what caused it? Bonds were up, the yen was up against the USD, but why did Gold decide to just spike $10 and not have a nice gradual move like the other ones.
     
  3. Logic

    Logic

    Over the long run (3 months+), gold has a fairly stable correlation with oil and silver. In the short term (like within a day), it's much more susceptible to news shocks, noise, and other idiosyncrasies.
     
  4. keep your eye on the dollar index. it broke the 200day to the downside, and I think that is fueling the rally in gold today.
     
  5. Tsing Tao

    Tsing Tao

    everything priced in dollars was bought, and the dollar was sold

    this was all based on a hypothetical (and most probably incorrect) analysis that the fed will agree to re-instate QE2.0 and $1T worth of treasuries in buyback program

    was issued today by boa/ml who is notoriously inaccurate when it comes to fed calls

    this means that next week if its not announced - look out below