oil gold correlation

 Because of this, USD/CAD can be greatly affected by how U.S. consumers react to changes in oil prices.

If U.S. demand rises, manufacturers will need to order more oil to keep up with demand. This can lead to a rise in oil prices, which might lead to a fall in USD/CAD.

If U.S. demand falls, manufacturers may decide to chill out since they don’t need to make more goods. Demand for oil might fall, which could hurt demand for the CAD.

Oil has a negative correlation with USD/CAD of about 93% between 2000 through 2016.

The traditional logic here is that during times of economic unrest, investors tend to dump the greenback in favor of gold.

Unlike other assets, gold maintains its intrinsic value or rather, its natural shine!

Gold and AUD/USD

Nowadays, the inverse relationship between the Greenback and gold still remains although the dynamics behind it have somewhat changed.

Because of the dollar’s safe haven appeal, whenever there is economic trouble in the U.S. or across the globe, investors more often than not run back to the Greenback.

The reverse happens when there are signs of growth.

Take a look at this awesome chart:

Currently, Australia is the third biggest gold-digger… we mean, gold producer in the world, sailing out about $5 billion worth of the yellow treasure every year!

Gold has a positive correlation with AUD/USD.

When gold goes up, AUD/USD goes up. When gold goes down, AUD/USD goes down.

Historically, AUD/USD has had a whopping 80% correlation to the price of gold