Below is a 6 month chart comparing the December Gold Future (GCZ), December E-Mini S&P future (ESZ) and the December US Dollar future (DXZ). They trade overnight. In the beginning of September, Gold pushed away from the US Dollar and moved in tandem with the S&P to the upside.
The "real" crew appears to be back. Since March of this year Gold significantly outperformed the S&P. We'll see if this correlation continues in October. Overnight the Dollar is rallying, ES is down and Gold is down. The S&P and Gold need upside confirmation here after their huge September runs (imo). You can see what a correlation retracement would look like on the chart. The December Dollar Future needs to take out 80 resistance. Charts after the jump.
Interesting currency updates I just came across:
Two currency blocs — same problem, different solutions (EUR, RMB or Yuan) - FT Money Supply
China May Retaliate for Currency Measure, U.S. Businesses Say (Yuan) - Bloomberg (h/t fal)
Brazil's Mantega sees global "currency war" (BRL): FT - MarketWatch (h/t empiractor)
Charts courtesy of optionsxpress