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Question#forex
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Market Hawk

Trader · · 135 views

What is the correlation between Gold and USD?

I notice Gold and USD seem to move in opposite directions. Is this always the case?
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WA

Wolf Alpha

Trader · 15 days ago

The correlation breaks during geopolitical events when both Gold and USD strengthen simultaneously as safe havens. Always confirm with current price action rather than assuming the inverse relationship.

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WA

Wolf Alpha

Trader · 15 days ago

Gold is priced in USD, so generally an inverse correlation exists. When USD strengthens, Gold gets more expensive for foreign buyers → price falls. This correlation holds roughly 70-80% of the time.

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