USD Index and gold
Let's proceed under the assumption that gold is viewed as a means of protecting one's wealth. When times are tough, investors will shift the weightings of their respective portfolios to phizz and miners.
In this argument, let us also assume that the greenback is perceived as a safe haven, or a means to protect one's wealth, and that both gold and USD are the ONLY 2 safe havens.
OK.
Today, the USD Index is on the rise, reaching levels(88.6!!) not seen seen since March of 2009. At this time, gold sat at just under $1000USD/ounce.
If we assume that there are only 2 safe haven investments in the world, why the disconnect in price(now gold at > $200 higher)?
If the only way to explain the discrepancy is to include other safe haven assets or currencies, which top one or two can help me understand what's missing?
Thanks,
Shat