What currencies cover gold positions?

[2gavig]

What currency can I use to cover a position in ORO within the forex market?

[glomiepkm]

Check this site and study the correlations well: http://www.myfxbook.com/forex-market/correlation Work with intelligence, not effort.

[PEPELUIS400]

...

[evamispkcumas]

Gold.

[2gavig]

I’ve been looking at correlations but it’s still unclear to me if any currency has a strong and consistent relationship with gold. I see that sometimes the AUD moves in the same direction, but other times it seems to go free. Does anyone really use a currency to make direct hedge against XAUUSD? Or is it better to just reduce exposure and ready?

[Aipkmlgb]

AUDUSD is the closest you will find as indirect coverage. Australia is one of the leading exporters of gold, so its currency usually has a certain correlation with the price of metal. Now, don’t get too excited. The correlation varies with time. It’s not a physical law, it’s an economic relationship subject to multiple factors.

[MIGWLAPOMLA]

Forget about looking for magic correlations. Gold has a life of its own and doesn't account for any currency. If you want to cover yourself, I learned to handle the size of your positions and put decent stops. And if you insist on covering yourself with another pair, prepare for a headache. You're going to be longer managing the hedge than you're seriously operating.

[iilsoxmmc]

It has served me to partially cover with USDCHF. It is not perfect, but when gold falls by strengthening the dollar, the Swiss franc usually moves in the opposite direction. Yes, do not expect it to be a mathematical coverage. It is more an impact cushioning strategy than an absolute shield.

[2gavig]

I understand that no correlation is perfect, but I am interested in reducing risk without closing the whole position. Perhaps a partial hedge as you say is more realistic. I do not seek to protect myself from everything, only to soften the strong falls without getting out of the gold if I still trust the general analysis.

[camlllcomuna]

In that case, take a good look at the crosses with the yen. USDJPY and XAUUSD sometimes move in opposite directions, especially when there is aversion to risk. But as you have already been told, it all depends on the context. A correlation can last weeks and then disappear without notice.