Monday, March 09, 2009
The torrid affair between the U.S. Dollar and gold appears to have come to a hasty conclusion in just the last week or so as shown below. After following each other around like puppy dogs during most of February, at one point moving in the same direction for 15 days straight, they are now going their separate ways.
What's the significance of this? Dunno. But, since there is no fundamental reason for any relationship between the two - the dollar versus other paper money should not be affected by gold versus all paper money and vice versa - maybe the two will settle into a complete non-correlation (as it should be) rather than the inverse relationship that has been the norm.