USD and gold can rally together - HSBC

Research Team at HSBC, expects the USD to gain further support in the aftermath of Mr Trump’s win and the USD and gold have a traditional inverse relationship.

Key Quotes

“This is logical as gold is regarded as the world’s supreme hard asset and the USD the world’s supreme paper asset. The two do not necessarily move lockstep however and gold and the USD can deviate from this relationship for long periods. This occurred during the financial crisis when for a prolonged period gold and the USD rallied simultaneously. We think it likely that enhanced uncertainty in addition to supporting the USD, will also buy gold.”