zinfool

Has Gold Become Correlated to the Stock Market?

Gold has correlated to the markets for a while now. The hedge fund buying of gold and silver, and then the huge hedge fund redemption, margin calls, and derivative melt down, has caused gold and silver to move with the markets rather in their normal inverse move to market conditions. The commodities bubble also caused by the hedge funds, has multiplied the effect, adding more volatility, and has pulled precious metals along for the ride.