Originally Posted by antelope_sniper
http://www.spdrgoldshares.com/media/GLD/file/Gold%26USStockIndicesDEC200120fina.pdf

Originally Posted by From the abstract
The short-run correlation between returns on gold and returns on US stock price
indices is small and negative and for some series and time periods insignificantly
different from zero.... Only
short-run relationships are evident. Granger causality tests find evidence of unidirectional causality from US stock returns to returns on the gold price set in the London morning fixing and the closing price. For the price set in the afternoon fixing, there is clear evidence of feedback between the markets for gold and US stocks.


AS,

Not sure what your point is. I think you are trying to show that when the stock markets go up the gold price goes down and vice versa. As I said, they can move in concert. Gold prices and the Dow both moved up nicely from 2009 through 2012. Four years. In the ten year period from 2003 to 2012 gold and the DOW reached year end levels over the previous year 8 years out of ten.

It is a gross and erroneous error to believe that gold and the DOW have a reverse relationship. Nice and simple but wrong.

It could be that both the DOW and gold move up in the next two years.

TF

The tax collector said: “Lord Jesus, have mercy on me, a sinner.” Jesus said he went home “justified.”