Spot Gold loses inverse correlation with USD

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On the daily chart, Spot Gold has lost its inverse correlation with the Dollar Index (DXY). Gold has lost its correlation with the dollar before and this last can last for a few months. The historical notion that Gold will rise because the USD is falling is not a given. Gold can stay disconnected from the dollar for a few months at a time, especially if Treasury yields are on the rise, so unfortunately the fresh lows being made by the DXY are not a reason to buy Gold just right now. For now the precious metal remains capped at US1818.

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