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Simon,
>I'm trying to trade gold and silver futures :-) normally when the
>dollar index is in an uptrend gold and silver declines, but for some
>strange reason this bond has been broken for the last couple of days.
There is no such thing as two 100% uncorrelated markets. There
will be days when historically uncorrelated markets will appear
correlated.
There are also times when gold and silver don't move in lock-step,
either.
All your observation means is that the dollar got stronger against
other currencies, and it also got more valuable in terms of its
worth in precious metals. Those two observations togeter are either
a sign that the market believes the US economy is improving short
term, or it's simply market noise.
There isn't necessarily a connection between gold prices and
currency prices anyway, because most of the world's currencies
(including ours) are fiat currencies that have no backing in gold or
anything else.
-A
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