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  1. #1
    Active Member Kius's Avatar

    Gold And How It Affects EUR/USD ? !!!

    So, I've been reading a few articles here and there, and some of them mentioned how gold typically runs parallel to the USD, meaning a rise in gold prices usually coincides with a drop in the USD. So, I'm wondering, if gold drops, and the dollar rises, would that be a safe indicator to place a "put" option on the EUR/USD, since a stronger dollar means a weaker pair (right?) ?
    Last edited by Kius; 01-27-2014 at 04:10 AM.

  2. #2
    Legendry Member willyw's Avatar
    Spot Gold (XAU) is quoted in USD, so if you are long gold, meaning that you are buying gold for USD, ie buy Gold and selling USD and vice versa. Its the same theory with ccy, eg. EUR/USD, if you long EUR/USD, you are buying EURO for USD (buy EUR and sell USD). Hope that answer your question.

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