Does the Lack of Gold’s Reaction to Weak Dollar Invalidate Its Bullish Outlook?

(Before It's News)

by Przemyslaw Radomski, CFA
Gold Seek

Gold fell more than 1 percent on Tuesday hitting its lowest price in nearly a month. The most concerning part about this decline is that it took place with dollar’s simultaneous plunge. We have already touched upon the usual negative correlation between gold and U.S. dollar in the past, and while it is certainly true most of the time, there are periods where precious metals fail to react to dollar’s weakness. There are various hypotheses why this is so this time and one of them is the “fiscal cliff” issue.

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