USD-gold - oldest, most popular correlation.

Currency Anna 21 May 2019 Hits: 208

So, as was already mentioned in our previous entry, the most prominent and famous intermarket correlation is the relationship between the USD and gold.

And even though it is mostly obvious, I am going to dive into the topic a little bit so that to grasp all of the aspects.

Let’s say you have two couples – USD/XXX and XXX/USD.

It is obvious that gold is going to ALWAYS move against the greenbacks movements. That means that XXX/USD are going to go hand in hand with the movement of the gold.

And again. How can we get a use out of this info? Well, you can open two different trading accounts with two different traders and when the opportunity strikes you can put down two similar trades – XXX/USD and gold.

Bear in mind that you always have to look for stop loss and take profit numbers. That is the only way to shield yourself from the losses in case your predictions are not going to be truthful.

Similarly to that, USD/XXX couple is going to go with gold like black and white – polar opposites. That is why when the couple is growing, gold is going to be losing points and vice versa – when the couple sees the decline, that means that gold can be successfully bought.