USD and Gold Move in Tandem, Signaling Risk Aversion

International Business Times reports that since the outbreak of the anti-government unrest in Egypt, gold and USD have been moving in tandem indicating risk aversion in the market and investors desire for safe-haven assets.

The market news is quoted as saying:

Anti-government protests in the Middle East and North Africa have escalated. While oil prices have jumped amid worries over oil supply disruption, precious metals also strengthened. We noticed that short-covering in gold futures began 2 weeks ago. The same unwinding should happen in USD futures which have been sold down excessively.

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