The dollar is making its impact felt on gold. The metal traded in near-perfect opposition to the currency, with the 30-day historical correlation reaching negative 0.78 on May 20. That’s the strongest inverse correlation since November 2014. A reading of negative 1 would mean the two move in opposite directions all the time. Gold is often used as a hedge against the currency and the stronger dollar makes bullion more expensive for buyers outside the U.S., which reduces gold demand.
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