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That gold/dollar correlation
Posted by Izabella Kaminska on Oct 05 13:06. RBC Capital Markets draws attention to the US dollar-gold correlation on Monday:
As they note, the correlation has strengthened a lot since 1996 — a 1 per cent move in the US dollar index has increasingly resulted in a -1.2 per cent move in the gold price.
RBC Capital Markets draws attention to the US dollar-gold correlation on Monday:
As they note, the correlation has strengthened a lot since 1996 — a 1 per cent move in the US dollar index has increasingly resulted in a -1.2 per cent move in the gold price.
While RBC observe that the relationship has occasionally broken down in that period, they note this has only happened at times of elevated geopolitical or financial market risk. This leads them to conclude:
We believe that a key underlying driver for the recent strength in the gold price has been the fundamental weakness in the U.S. dollar rather than strong fundamental demand for gold.
[emphasis in original]
from ftalphaville
Posted by Izabella Kaminska on Oct 05 13:06. RBC Capital Markets draws attention to the US dollar-gold correlation on Monday:
As they note, the correlation has strengthened a lot since 1996 — a 1 per cent move in the US dollar index has increasingly resulted in a -1.2 per cent move in the gold price.
RBC Capital Markets draws attention to the US dollar-gold correlation on Monday:
As they note, the correlation has strengthened a lot since 1996 — a 1 per cent move in the US dollar index has increasingly resulted in a -1.2 per cent move in the gold price.
While RBC observe that the relationship has occasionally broken down in that period, they note this has only happened at times of elevated geopolitical or financial market risk. This leads them to conclude:
We believe that a key underlying driver for the recent strength in the gold price has been the fundamental weakness in the U.S. dollar rather than strong fundamental demand for gold.
[emphasis in original]
from ftalphaville
