Currency and precious metals remain as key instruments in which investors leverage futures trading to make better Return On Investments. History has proved that there is a strong relation between price of various currencies and precious metals. This can be easily proved from the statistics on SlideShare.
Try and understand that market is not just dependent on a single source of information. Money has to move from one segment to another as per behavioural economics. When the demand in a particular financial instrument drops significantly, it will shift to another financial instrument. It is same as when people lose interest in one index or stock or commodity, they consider another investment. When you deal in the international market, you refer to various attributes of different markets interlinked with each other in some or the other way. This link may be breached if there is an immediate reaction out of a big news such as the FOMC announcement. However with time, it gets cured.
In general market conditions, it will rarely happen that markets don’t perform in a particular fashion in respect to other key instruments.
Consider the price of stocks and gold- they are generally inversely related. In the statistics given on the above link, you can observe that Gold was at highs when stocks were trading at its lows. Similarly, vice-versa is true. Stock market participants need to pay attention to various factors that influence the market.
It is a very complex market and making the right decision is really necessary – that is where commodity and stock tips help.