Gold & the USDX: Correlations

From sunshineprofits.com

It’s crunch time for gold and the U.S. Dollar Index (USDX), as they find themselves at a crossroads. As of Wednesday, the USDX is holding its lows but wants to move up, thus invalidating its breakdown. And gold? Well, gold did gain a bit today, but it’s essentially jumping up in an elevator that’s moving down – it just doesn’t have enough steam to break out. While it’s been the traditional view that when the US Dollar declines, gold increases in price, we find that's not always the case when comparing historical patterns. And just to watch the price of gold itself when making a buying decision is not ... (full story)