Gold nominated in USD is usually highly negatively correlated to the USD (obviously 100% negatively correlated assuming that either only USD or only gold is changing). However, in times of big concerns this correlation turns positive, as both currencies are considered 'safe' investments. These times were last seen in Feb/Mar 2009 (financial crisis) and as shown below in the beginning of 2010 when the Euro crisis began. In the past 2.5 weeks we saw a similar picture. Is it gonna go on like this?
An important factor definitely will be the decision on QE3 as it would put pressure on the USD (if it comes) which would further support gold going up...
An important factor definitely will be the decision on QE3 as it would put pressure on the USD (if it comes) which would further support gold going up...
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