With the recent development of stocks no longer following every tick of the DXY, it appears the algos have been now reprogrammed to speculate much more aggressively in gold. As Zero Hedge first speculated over a month ago, the Fed’s excess liquidity is no longer making its way into the broken stock market, and instead is reorienting toward smaller speculative markets such as gold. As the chart attached demonstrates, the inverse correlation from any dollar weakness is magnified in gold, while stocks continue drifting aimlessly. Then again this is merely an intraday observation. Look for the algos to be tweaked promptly as traditional correlations seek to get reestablished.
