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The changing U.S. dollar-gold relationship
Wednesday, February 25, 2009
Who knows where things will go from here - today has certainly been an interesting day thus far for both the trade-weighted U.S. dollar and gold - but the relationship between the two certainly seems to have changed quite dramatically over just the last month.
What used to be an inverse relationship that saw the two going in different directions more than 70 percent of the time has turned into a very positive correlation over just the last month or so, the two moving together for 15 consecutive days as of last Thursday.
ooo
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4 comments:
They're both panic trades. People don't know WTF is going on...cash and gold both seem like safe bets. Time to start underweighting GLD.
Interesting point, but what about explaining or at least, offering interpretations.
And put this into a longer than a two year perspective and what were the outcomes/connections to the economy, gold and dollar.
See here and here for previous commentary on this subject.
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