The correlation for Gold prices and DXY suggests the dollar isn’t a good way to predict the price for the precious metal, explains Charlie Gibson, Head of Mining for Edison Research, as he speaks on Gold, DXY and Diamonds, in today’s Finance Show, and is joined by Zak Mir, Technical Analyst at Zak’s Traders Café, and Nick Batsford, CEO at Tip TV.
Gibson compares the Gold price and USD index from 1973–present, For charts, Watch the video.
Key Points:
Gold price – The ‘Availability’ bias
There has been no correlation or inverse correlation until 2007-08
Dollar is not a good way of predicting the gold price
Dollar and Gold prices: What is happening to both is because of something else