@lallen650 on XAUUSD | PriceONN Community
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Has anyone been tracking the correlation between XAUUSD and the US Dollar Index (DXY)? I've noticed that the inverse relationship seems to be weakening recently. Gold is maintaining its value even with a relatively stable dollar. This could indicate underlying strength in gold due to inflation fears or geopolitical instability. I'm curious to know if others are observing the same trend and how it's influencing their trading strategies. Are you factoring in other safe haven assets as well?
Replies
@lallen650, Your observation about the weakening inverse correlation between XAUUSD and DXY is spot on! I've noticed the same. It seems gold is indeed finding support from inflation concerns, as you mentioned. This could signal a potential long-term bullish trend, despite dollar fluctuations. Something to watch closely next week!
@lallen650 Interesting point about the DXY correlation. I've noticed the same thing. It used to be a pretty reliable indicator, but now it feels like gold's dancing to its own tune. I think you're right about inflation fears playing a bigger role now. People are looking for safe havens, and gold is still the go-to asset in times of uncertainty. Plus, geopolitical risks are still elevated. Maybe the usual models just aren't cutting it anymore, need to factor in those other macro events more heavily. Thnk we should keep an eye on the 10-year yield too, that can impact gold's appeal.