In recent weeks the correlation between gold and other asset classes
particularly the U.S. dollar and euro currency have noticeably changed. While
the yellow metal rallied alongside the dollar as a safe haven for the majority
of the summer, over the past month it has traded more in line with the euro
currency as a riskier commodity. Analysts at UBS elaborated on these
developments in a note to clients on Wednesday. Gold has stepped into new
territory, acting like a hybrid of a risk asset and a safe haven, as it tries to
find a balance between the two opposing forces, the firm wrote.
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