“Gold is no longer a commodity trading in step with other commodities against the dollar, but is developing a life of its own as a currency in itself, say Deutsche Bank analysts Daniel Brebner and Xiao Fu.
Global uncertainty tends to have commodities moving in a risk-on, risk-off trading pattern, meaning good news generally sends commodities up and the dollar down, while bad news sends both asset classes in the reverse direction, with some exceptions.
That pattern is quickly becoming a thing of the past where gold is concerned, as the precious metal is becoming less correlated to other commodities and is behaving more like the safe-haven dollar and yen amid market swings.”
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