The real diagnosis analysis of the correlation relations between USD index & gold price

A large number of studies show that the price of gold and the dollar index has a very clear negative correlation. The dollar index is the important factor in gold prices. This paper use the daily data from Jan 1^st, 2001 to May 5^th, 2010 to analyse the correlations between the USD index and the gold price which depend on the Co-integration theory, aim to prove although there is the negative correlation between USDX and the gold price, no cointegrating relationship does exist between the two in long-term, the correlation relations between the two is affected by many factors.