We’ve been pointing this out a lot lately that gold is now strictly a “risk on” play.
It goes up when stocks are up, and as this morning shows…. it goes down when stocks are down.
From FinViz, a look at the futures:
Why is this the case? Why does gold just move like equities do? Basically, because it’s all about the dollar. Today people are feeling nervous, so they want more dollars, and less of everything else. Previously, people were feeling good, and wanted less dollars, and more of everything else.
Until this changes, expect the correlation to remain in tact.