Institutions: Gold has decoupled from the dollar, and a short correction may be beneficial

Gold is now largely out of the US dollar, institutional analysts said on April 13, as rising tensions in the Middle East prompt investors to seek refuge in safe-haven assets. Platinum is also testing a key resistance level of $1,000 an ounce, driven by the upward momentum of gold prices. Jim Wyckoff, senior analyst at Kitco Metals at Financial Institution Group, said that gold prices generally fall when the US dollar index and US Treasury yields climb. But gold prices are still rallying strongly, which is a strong indication of strong haven demand. "Gold prices continue to strengthen as all parties are afraid of missing out on this rally and have entered the market," Ole Hansen, head of commodity strategy at Saxo Bank, said in a note. Chris Gaffney, president of global markets at EverBank, said: "Gold has held up against what would normally be negative data and the late-night pullback in gold has been somewhat beneficial and we think the trend will continue to be positive going forward."