Thursday, April 02, 2009
After a brief period in February and March when the trade weighted dollar and the price of gold marched in near-lockstep, the two seem to be reverting to either their typical inverse correlation or, hopefully, the natural relationship between the two, no relationship at all.
Today's market action so far is a good example of what was seen in recent months - the U.S. dollar index is down about one percent and the yellow metal is down two or three times that amount as investors embrace risky assets again.
Bank of America shares are up 10 percent! It looks like happy days are here again!