Gold Price Trend 2009
Help to understand the price of gold?
17:30 GMT. The price of gold hit a new record high on Monday, the dollar resumed its downward trend, helping global stocks to new highs for the year 2009. Can someone please explain the correlation between gold and the dollar from here. I'm trying to learn to fight financial news! Thanks
Gold is a commodity that is generally regarded as a substitute for money. People buy gold when they have confidence in the currency of your country. When people buy gold with dollars, which are, in essence, get rid of their dollars and buy a different kind of money. When the price gold (in dollars) rises, it means the dollar is falling. You can do the same by comparing the value of the dollar value of the euro or pound sterling (is ie, how much money is needed to buy a euro or a pound), but may reflect more than the value of the dollar – which might reflect the confidence, or lack of confidence in the European and British economies. A cleaner way of determining the value of the dollar is looking at the price of gold.
8/11/2009 GOLD Futures Trading
