The following table includes the correlation between gold and the most popular currency pairs over various timeframes. A value close to +1 indicates a strong positive relationship between gold and the pair, while a value close to -1 indicates a strong negative relationship. Colored values indicate week-to-week changes of over 30%.

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Gold-Forex Correlations for the previous week can be foundhere.

Weekly Commentary: With data last week showing that the US-led recovery may not be as quick as previously thought, expectations for Federal Reserve tightening and overall risk sentiment faded, pressuringUS yields lower from its multi-month highs. As the focus further shifted away from sovereign debt problems to recovery, US treasury yields continued to drive both gold and FX markets.

US data is expected to drive price movements for both gold and FX markets this week, with consumer confidence, durable goods and tertiary GDP revisions for the fourth quarter on tap. With expectations relatively flat, overall market sentiment may continue with last week’s trajectory. Although sentiment remains relatively unclear without major fundamental drivers, the drift lower in US yields from last week could result in highergold prices and fund additional market shifts towards higher yielding currencies and assets.

--Written by David Liu, DailyFX Research