Discussion in 'Metal Futures' started by niceneasy, Feb 27, 2009.
Dollar and Gold correlation is off
Market and Gold correlation is on
I see, could you explain a little further? Not familiar with what the market and gold correlation means?
traditionally if the dollar is going up against other currencies - you would see gold go down and vice versa. you could set your watch by it. this relationship is no longer true. the dollar and gold have both been strengthening. in addition - it seems like the new correlation (when the market starts going down) is for gold to go up. which makes sense - its a fear thing i suppose but this is a new correlation too....
you need to look at more than just USD and gold to trade
mr market likes to flip us traders around at his choosing
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