"Gold is generally quoted in US dollars per ounce of gold; so any fluctuations in the strength of the dollar are likely to be reflected in the dollar price of gold: when the dollar falls the gold price rises........ and when the dollar rises gold falls. The relationship is not exactly inverse, however, and
there are times when both gold and the dollar rise or fall simultaneously."http://www.incrediblecharts.com/economy/gold_dollar.php"However, it’s important to understand that
it’s possible for the U.S. dollar and gold price to increase at the same time. This can occur because of a crisis in some other country or region. This would cause investors to flock to safer assets—the U.S. dollar and gold. The U.S. dollar is also driven by many factors—like monetary policy and inflation in the U.S. vs. other countries. It’s also driven by economic prospects in the U.S. vs. other countries. Investors need to consider all of these factors."
http://finance.yahoo.com/news/why-gold-us-...-170016117.html"One can blow up their entire account being wrongly positioned on a move like that while hoping for the old correlations to apply, even if it is only within a three-month period of time.
The point I am trying to make is
that correlations come and go without any warnings. Unless you have the tools to be able to predict when those seeming correlations will cease, you had better know how to use stops on all your trading and investment instruments. Otherwise, you will be left holding a bag full of losses, while scratching your head and wondering what happened. It is for this reason that
I always suggest one analyze each market on their own for their own merit, and to avoid using any seeming correlations or inter-market analysis as a heavily weighted tool in your investment analysis arsenal".http://www.marketwatch.com/story/what-happ...tion-2015-04-10Thanks for the input bro. I did come across some of these articles. Even though they are not exactly inverse, it's not unusual for them to move in opposite direction.
So for a Malaysian investor, this is not good right? We only benefit if they move in the same direction (appreciate) right?