Is there really a correlation between the U.S. Dollar Index & gold, and stocks & gold?
I’ll cut right to the chase: Unless you’re about 80 years old, the United States economy is undergoing the worst downturn in living memory. Every measure of growth is grim. The worlds most recognized stock index — the Dow Jones Industrial Average– is down 30% from its October 2007 all-time high. If ever there was a time for the “Safe-Haven” lure of precious metals to surface — now, yesterday, even seven months ago when the Bear Stearns’ bailout launched the historic reshaping of Wall Street — would have been it. Yet — from its March 17 record peak, GOLD prices have plummeted more than 20%. As for an explanation, the mainstream experts have prepared an “exception” to the Economy Down, Gold Up rule: A rise in the U.S. dollar. On this, the dramatic events of Friday, October 10 say plenty. On that day, the U.S. Dollar Index soared to a 14-month high against a basket of the world’s key currencies – AND – Gold prices plummeted $88 an ounce in the metal’s steepest one-day drop EVER. “Gol
