This article was first published on Orbex Forex Trading Blog.
- -
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
- -

Gold

The correlation between the US Dollar and gold broke down this week with the yellow metal posting its third consecutive weekly gain despite the rally in USD. Much of this dynamic is explained through the continued slide in equity markets this week, fuelling a strong safe haven bid in gold. After rallying initially on the week, US equities slumped mid-week as the US Dollar gained traction again in response to the hawkish US FOMC minutes which confirmed that the majority of FOMC members view further rate hikes as necessary given economic momentum.

TradingGold

The market is widely expecting a fourth .25% rate hike in December this year. The release of the latest economic data continued to support this view with the leading economic index rising 0.5% in September along with solid numbers in both initial jobless claims and the Philadelphia Fed business outlook. Despite the gains in USD though, it seems that while equities continue to display weakness, gold will retain a bid.

The rally in gold ha...


--
To keep reading this article, please navigate to: Orbex Forex Trading Blog.

Tagged on: