One of the most widely accepted truisms in what passes for our financial media is that the dollar and gold are correlated: when the dollar weakens, gold rises, and when gold rises, the dollar declines.
Do the trends up and down align inversely? In other words, when gold is rising, is the dollar declining, and vice versa?
Nope. The supposedly inversely correlated DXY and GLD have risen in tandem for several significant stretches of time.
Conclusion: there is no correlation between gold and the U.S. dollar index. Not even close.The two move independently; any apparent correlation is semi-random signal noise. They are not on a simplistic see-saw.
http://www.zerohedge.com/news/2013-07-08/a...dollar-and-gold
This post has been edited by yklooi: Aug 16 2013, 03:37 PM
Gold Investment Corner V7, all about gold
Aug 16 2013, 03:32 PM
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