FXstreet.com (London) - Oil and gold have become increasingly tied to currency movements in recent months, as correlations have become even stronger under the stresses of volatile markets and a pressured global economy.
Gold has historically always been seen as a popular asset in times of crisis, and this epoch is no different, as we have witnessed gold prices hitting all-time highs and breaking them repeatedly.
The precious metal is most closely associated to AUD, and in the absence of other macro data you can often find gold and AUD moving closely in sync. In todays trading session gold made $10 dollars, to currently trade at $1123.80, whereas AUD slipped initially, but now rebounded to trade flat at 0.9099 (versus 0.9104 open) against the dollar.
Oil is most closely correlated with CAD, due to the Canadian economy's dependence on its main export. And indeed as we have seen in this session Oil dropped off and CAD followed. Since our last report oil bear trend has extended, with WTI frontmonth contract dropping below 69 dollars for the first time in two months.