Intermarket correlations

 

 

IfThenWhy
Gold UPUSD DOWNDuring times of economic unrest, investors tend to dump the dollar in favor of gold. Unlike other assets, gold maintains its intrinsic value.
Gold UPAUD/USD UPAustralia is the third biggest gold producer in the world, sailing out about $5 billion worth a year.
Gold UPNZD/USD UPNew Zealand (rank 25) is also a large producer of gold.
Gold UPUSD/CHF DOWNOver 25% of Switzerland’s reserves are backed by gold.
As gold prices go up, the pair moves down (CHF is bought).
Gold UPUSD/CAD DOWNCanada is the 5th largest producer of gold in the world. As the gold price goes up, the pair tends to move down (CAD is bought).
Oil UPUSD/CAD DOWNCanada is one of the top oil producers in the world. It exports around 2 million barrels of oil a day to the U.S. As oil prices go up, the pair moves down.
Gold UPEUR/USD UPSince both gold and the euro are considered “anti-dollars,” if the price of gold goes up, EUR/USD may go up as well.
Bond yields UPLocal Currency UPAn economy that offers higher returns on its bonds attracts more investments. This makes its local currency more attractive than that of another economy offering lower returns on its bonds.
Dow DOWNNikkei DOWNThe performance of the U.S. economy is closely tied with Japan.
Nikkei DOWNUSD/JPY DOWNInvestors consider the yen as a safe haven and tend to seek it during periods of economic distress.

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