Dollar and Gold No Longer Headed in the Same Direction

by: Tim Iacono

The torrid affair between the U.S. Dollar and gold appears to have come to a hasty conclusion in just the last week or so as shown below (click to enlarge). After following each other around like puppy dogs during most of February, at one point moving in the same direction for 15 days straight, they are now going their separate ways.
IMAGE Click to enlargeWhat's the significance of this? Dunno. But, since there is no fundamental reason for any relationship between the two - the dollar versus other paper money should not be affected by gold versus all paper money and vice versa - maybe the two will settle into a complete non-correlation (as it should be) rather than the inverse relationship that has been the norm.