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Axel Merk observes that gold and oil prices are both rising, indicating a change from their usual negative correlation.
He points out that this development is particularly notable as it occurs alongside increased geopolitical tensions and higher bond yields, suggesting that markets may be moving past the traditional pattern of gold falling due to supply shocks in oil markets.
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Earlier this year, Axel Merk observed a surge in gold prices following the Treasury Twist announcement. He has also commented on China's efforts to strengthen its currency's role in global trade by building infrastructure to support adoption, as detailed in a previous note on China's trade ambitions. These observations add context to his current remarks on market correlations.