what’s the relationship of the price of gold to the us dollar?
July 24th, 2009 | by admin |
JW asked:
i’ve been reading about all this subprime mortgage meltdown crisis. i keep hearing that the country’s heading for a recession & that the fed will intervene & ultimately cut rates. i understand that part. but then i hear gold is a good place to park your money if that happens cuz during deflationary times when the us dollar weakens, price of gold goes up. i’m curious to know why that inverse relationship exists. that relationship doesn’t seem to exist (at least it’s not mentioned) with any other currency. thx.
elden
i’ve been reading about all this subprime mortgage meltdown crisis. i keep hearing that the country’s heading for a recession & that the fed will intervene & ultimately cut rates. i understand that part. but then i hear gold is a good place to park your money if that happens cuz during deflationary times when the us dollar weakens, price of gold goes up. i’m curious to know why that inverse relationship exists. that relationship doesn’t seem to exist (at least it’s not mentioned) with any other currency. thx.
elden
2 Responses to “what’s the relationship of the price of gold to the us dollar?”
By dsro on Jul 25, 2009 | Reply
For euros but others currencies had another way to keep the inflation dont lose value of get gold and less money and this only affect money through time is coming they demand gold and less money the moneyalso there are.
For euros but others currencies but others currencies had another way to keep the price goes up demandsupply stuff it.
By Allan on Jul 26, 2009 | Reply
The relationship is unique because gold is priced in dollars in international trading. The same is true of most primary commodities, including oil.
Some oil producers have been considering pricing oil in euros rather than dollars, because the euro has been strengthening over the past few years, while the dollar has been weakening.