Wednesday, May 26, 2010

FLIGHT TO SAFETY - GOLD & USD.

In 2010, the rally in the USD has coincided with a rally in the Gold.
The USD & Gold, normally share an inverse relationship. Gold has also managed to detach itself from the correction in the CRB commodity Index.

Currency instability, market volatility and concerns over mounting government debt have been considerable tailwinds supporting this rally in Gold.

Year to date, Gold has also outperformed the S&P 500 by a wide margin.

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