Commodities are breaking higher even in non USD terms, so it is not just the weakness of the USD that is accounting for the strength in Gold and Oil. The charts below are the gold and crude ETFs GLD and USO relative to UDN (the inverse USD Index ETF). In essence this strips out the impact of movements in the USD on Gold and Oil (i.e. the movement in gold and oil against a basket of G10 currencies such as the EUR, CAD, GBP, SEK, JPY, and CHF). It appears that the in favor currency now is of the “hard kind” not paper! We can see this trend lasting for months rather than weeks.
