This FX Pair Is Taking Down Gold

 | Jun 18, 2013 11:03AM ET

As the old saying goes, currencies make the world go around. Well, many gold traders and investor should take note that spot gold is trading inversely to the USD/JPY. When the USD/JPY chart declines, gold's price will increase and trade higher. Traders can easily look at a chart of both the SPDR Gold Trust (GDX ) and the Deutsche Bank AG DB Gold Double Long ETN (DGP). If the USD/JPY pulls back or declines, that's when spot gold is likely to trade off of the lows.