Gold’s Currency Characteristics and its Negative Relationship with the US Dollar
Alchemist, Issue 66, Page 16
2 Pages Posted: 27 Apr 2012 Last revised: 27 Jan 2013
Date Written: April 25, 2012
This article examines the negative relationship between gold and the US dollar. It considers the argument that a weaker dollar makes gold cheaper, increases demand for gold, which in turn drives up the price, giving gold and the dollar their negative relationship. The conclusion is that whilst this provides an explanation of the observed reality, there may be another reason.
Keywords: Gold, US Dollar, Exchange Rates, Trade Weighted Exchange Rates
JEL Classification: F00, F30, F31
Suggested Citation: Suggested Citation