Gold Breaks Away From Emerging-Market Currencies
- Assets negatively correlated only for 7th time in 12 years
- Past occasions were followed by rebound in EM currencies
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Emerging-market currencies and gold are moving in opposite directions for only the seventh time in the past 12 years.
The precious metal has rallied 20% this year as concern over trade tensions and slowing global growth spurs its haven appeal. Meanwhile, the demand from carry traders for developing-nation currencies has faded, dragging the benchmark index down 1.6% in 2019.