XJO - Bear Posts only (Factors which might cause the markets to fall), page-16847

"And if oil falls, gold goes up due to their inverse correlation."

What happens in a deflationary situation? I thought gold goes down. I have also seen a correlation with a market crash, soon after, gold seems to drop and then recovers.

With Gold surging to a new ATH, I would suggest that inflation is going up and not stabilising, or continued money printing and the continued decline in the USD / DXY.



I pointed out a week or so ago, that the drop in DXY usually leads to a surge in commodity prices. This has occurred in Aluminium and Copper. I am not sure this is to do with increased demand. Just a rebalance thing based upon USD valuations. If there is a drop in DXY with a drop in the commodity prices again, then watch out in the Materials sector.