Feb

11

Gold and The Dollar, by Craig Mee

February 11, 2007 |

 The back of my brain has been telling me for the last month of price action, as I glance through the numbers, that gold and the U.S. dollar are no longer best of friends (or at least reverse market indicators).

It appears to me that gold and the dollar index had a ambiguous correlation in the past, but all this has changed recently. Through the last month, gold has put on 8.3% (+55.9), while the dollar index has actually added .03% (basically flat).

I believe the Chair has shown in the past that relying on these inter-market relationships will lead to a diet of two-minute noodles. It looks like another one, at least for the moment, joins the graveyard.


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