With gold trading at a record high, we wanted to highlight the shifting correlation between it and the US dollar. Normally, when gold rallies, the dollar declines and vice versa.
However, as the chart below illustrates, gold and the dollar have become increasingly unlinked. In the chart, positive readings close to one indicate a strong positive correlation, while readings closer to negative one indicate a strong inverse correlation. The current level of -0.18 indicates a very weak inverse correlation. (Click to enlarge)