Why Is Gold Acting Like The U.S. Dollar, Rather Than Against It?

Alphaville is wondering whether gold ETFs have been hit with liquidations. That’s because gold has been acting like a proxy for the U.S., rather than a hedge.

Gold fell recently since mid-June:


As the USD fell:


Shares for the ETF GLD have indeed declined (below), though part of this could be explained by lower fees at a competing ETF ‘IAU’, which has seen its total shares rise (not shown).


Still, Alphaville raises an interesting point. Why hasn’t gold been hedging anything lately? You can read more of their view here.

(Charts via Alphaville)

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