Wednesday, October 12, 2011

“New Territory” for Gold Makes Trading “Very Challenging”

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DG365FD46564GFH654FU898 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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