InvestorQ : To what extent is the price of gold dependent on the value of the US dollar?
Rutuja Nigam made post

To what extent is the price of gold dependent on the value of the US dollar?

Answer
image
Priyanka N answered.
3 years ago
Follow

The price of gold is also largely dollar dependent. Historically, there has been a negative correlation between the performance of the dollar and the price of gold. Strengthening dollar has been synonymous with weak gold prices and a weak dollar has been synonymous with strong gold prices. That explains why the price of gold has been under pressure ever since the US$ decisively moved above the 100 mark. This influence gets more pronounced because all commodities are denominated in dollars and hence this relationship has come to stay.

1 Views