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01/24/2009

Why are Gold and EUR Diverging?

I'd be interested in knowing the group's opinion about the graph below. It used to be, I think, that gold and the EUR/USD moved in lockstep. Over the past month or more, these two have gone their separate ways. I'm confused, because looking at gold, I want to short it (and I have), but looked at the EUR/USD, I am bullish. This seems contradictory. Opinions?

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