Gold intermarket: strong correlation between DXY and Gold

Gold has is extending its bull rally for 2016 and the month of July en-route for $1,375 2016 highs and up over $20.00 on the day.

Gold's 2016 high was scored on two occasions in July before dropping back $1,310 and recovering from there to today's high of $1,367.57 so far as markets begin to get out of the US dollar while data continues to under perform. 

Well, well, well ... Do you still think the Fed will hike rates?

Skittish investors sought out haven assets today while mounting fears over the global economy and pending threats from European markets and banks coupled with an underperforming US economy have renewed expectations that a rate increase by the Fed will not come in 2016, supporting the price of the yellow metal and the US dollar drops.

DXY dropped from 97.45 after gold had made the move from $1330 on the 21st July but by the 29th July the markets converged again and gold rallied again from 1337 and DXY fell from 96.69 and has not looked back until a pause at 95.58 before dropping again to to test the 95 handle as gold now reached highs of $1375.