For a majority of the past year, the US dollar has been fairly range-bound, but the massive move away from risk assets more recently led to major buying for what is globally considered a safe-haven currency. From its 52-week low and high on March 9th and March 20th, respectively, the dollar index rose 8.28%. But since that peak just before the equity market’s bottom, the dollar index has come back down; currently ~3.25% below that high.

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With the dollar lower, another safe haven that tends to trade inversely has benefited: gold. Since late February, the yellow metal had struggled to break out to new highs, but this week it has finally broken out. Currently, gold is at its highest level since late 2012.  

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