💱🔺 Gold Outperforms G10FX, Rises Above $1950.0/oz: Cable FX Macro

**As seen in Macro Walk report 03/17/23, subscribe at cablefxm.co.uk/reports

• The cross asset correlation section of the Macro Walk report noted gold-FX short-term coefficients breaking up from long-term relationships

• This happened as gold climbed above $1950.0/oz, the move looks to test its 2020 highs. The divergence in fiat/USD and XAU/USD follows the story of financial stress and the liquidity injection, investors are looking for alternative assets to the dollar like crypto and gold

• If we compare the relative performance of XAU to EUR/USD, we note that the gold out performance has sent the spread between the two to a new high (looking back 10-years).

• The last time gold reached a peak was in 2020, this was followed by a spread narrowing to EUR/USD as the move was both ways, gold retraced from its highs and the euro got stronger. This development took place over months, XAU/USD reached its peak in July 2020 before retracing and shrinking its spread to EUR/USD, the differential bottomed in March 2021