Why gold’s bond with the dollar has broken
By GCRU Gold News on Thursday, July 21 2016, 00:02 - Permalink
Think of it as the breakup. Gold’s historical relationship with the U.S. dollar has been going through a bit of a separation.
The precious yellow metal GCQ6, often trades inversely with the ICE U.S. Dollar Index DXY, a gauge of the dollar’s strength against a basket of six rival currencies, as moves in the U.S. unit can influence the attractiveness of gold to holders of other currencies. In other words, gold tends to rise when the dollar weakens.
However, that normally tight relationship has been under some serious stress, lately.