Corelation between Dollar and Commodities

[shrenickshah]

Hello All,

I have been tracking dollar and commodities for long know but still confused regarding the correlation between them...I believe there is a inverse relation between dollar price and commodities such as gold and oil...

Can anyone please send me any document or paper regarding the corelation of these instruments..

(Gold, Dollar, Oil)

Shrk

 

[TWI]

Why do you need a paper on this, relation is very simple. Commodity markets are generally priced in dollars but paid for in consuming country currencies. If the dollar falls then commodities will rise in dollar price but this does not mean they rise when priced in other currencies. Commoditiues are howeverin a bul market right now due supply/demand issues so the dollar plays the lesser role in this equation.

 

[UM_manager]

I believe there is a inverse relation between dollar price and commodities such as gold and oil...

Dollar(index)-Gold 20-day correlation