  We analyze recent data on the complex inductance of dc SQUIDs that show 1/f
inductance noise highly correlated with conventional 1/f flux noise. We argue
that these data imply a formation of long range order in fractal spin
structures. We show that these structures appear naturally in a random system
of spins with wide distribution of spin-spin interactions. We perform numerical
simulations on the simplest model of this type and show that it exhibits
$1/f^{1+\zeta}$ magnetization noise with small exponent $\zeta$ and reproduces
the correlated behavior observed experimentally.
