Many hold gold as a hedge against the dollar and indeed the traditional negative relationship has been very evident this year - the negative correlation particularly strengthened in H2. At the moment gold's 20-day correlation with the trade-weighted dollar index is hovering near the lowest levels since September 2012. This also means that the relationship between gold and the euro is near its strongest - right now the 20-day correlation sits at 0.62, which is near the highs for the year. With the dollar appreciating strongly, helped by BOJ and ECB easing, it should be no surprise that gold is coming under tremendous pressure.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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