Pursuits
Gold to Gain, Revive Inverse Link With Dollar: Chart of the Day
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Gold is set to rally while the dollar is poised to fall, severing a rare positive correlation, amid prospects the Federal Reserve will expand monetary-easing measures, according to Commerzbank AG and UBS AG.
The CHART OF THE DAY tracks the correlation coefficient between gold for immediate delivery and the dollar-euro based on 60-day observations. The reading was recently 0.32 and has been positive since May 19, data compiled by Bloomberg show. The reading was negative for all but six weeks in the prior eight years. A coefficient of 1 means two assets move in lockstep, with a minus-1 reading reflecting opposite changes.