Gold and USD Trade weighted index

The below plot is a bi-density chart of the Gold spot rate in US$ versus the Fed USD Trade weighted index (weekly data sinceĀ  January 1979). The contour lines delimit the empirical joint distribution. The yellow line is the best fit derived from a quantile regression The dotted red lines delimit the quantiles for the Gold price. The bold red cross hair lines show where both the USD TWI and the Gold Price is at the most recent point.

plot of chunk bidensity2