Are high gold prices signaling a dollar collapse?

Key points
- Gold has rallied $100 in 10 days
- Gold has only closed above $2,000 on 1% of trading days since 2010
- USD and gold are negatively correlated around -0.70
Gold prices near highs
In only 10 trading days, gold futures (/GC) have rallied over $100 to reach $1970 on Wednesday. Driven by geopolitical fear, gold volatility (GVZ) is also up 8% this month. While prices could go higher, there is little historical support for prices over $2000. Since 2010, gold futures have only closed above $2000 33 times - equating to 1% of the time.
Gold's impact on USD
Given the recent strength of both assets, traders begin to speculate whether one is bound to fall given historic correlations, or if the current global landscape will allow recent trends to persist. Several scenarios for future direction exist. Fear could push US yields and potentially USD lower, or fear could subside pushing gold lower. Alternatively, global fear could continue and the US could continue to outperform - leaving both assets to hold onto gains.
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What is the relationship between gold and US dollar?
Historically, gold has moved inversely to USD more often than not. However, both assets are seen as flight-to-quality assets that traders look to during times of uncertainty.
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