Oil and the dollar are doing something they have only done 11 times in the past 35 years

MarketWatch/Mark DeCambre/5-9-2018

“Oil prices and the U.S. dollar are rallying in tandem—a dynamic that has only occurred 11 times since 1983, and it’s drawing the attention of market participants attempting to assess its significance.  Oil prices and the U.S. dollar are rallying in tandem—a dynamic that has only occurred 11 times since 1983, and it’s drawing the attention of market participants attempting to assess its significance.”

MK note:  Paradigm break or short-term anomaly?  I’m going with short-term anomaly.  It is usually gold and oil that go in the same direction, but the situation does signal that something has to give.  We have had other instances of oil and the dollar rising together, as this article points out, the most recent being in late 2017.  The concurrent rise lasted a few months and then abruptly ended when the dollar took a major turn due south and oil continued higher.

Chart courtesy of TradingEconomics.com

This entry was posted in Today's top gold news and opinion. Bookmark the permalink.