Is The Dollar Commodity Correlation Breaking Down?

Rupert Hargreaves

Published onJune 28, 2016

Updated on May 13, 2021

Is The Dollar Commodity Correlation Breaking Down?

A few weeks ago, technical analysts at CLSA Benthos published a research which seemed to claim that the dollar commodity correlation is breaking down.

This claim is based on technical analysis that claims the Dollar Index could move to 115 in the near term. However, commodity prices are also gaining ground, giving a reason to believe that the dollar commodity correlation is starting to break down.

Commodity prices display a predictable pattern

Over the past 100 years, commodity prices have displayed a very predictable pattern. Prices accelerate every 28 to 30 years, typically, a spike in prices is seen before a pattern of cyclical ranging price action. The January lows are likely to mark the...

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Rupert Hargreaves

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha

Is The Dollar Commodity Correlation Breaking Down?

Commodity prices display a predictable pattern

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