U.S Currency Versus Gold Price
Gold prices has been unsteady for the previous months, with great fluctuation from day to day trade sessions and news-outbreak. Gold however, has reached its continuum eight week slow-decrease, which is a streak that has lasted longest ever since 2004. The reason for the decline may result from the increase in the US dollar value, which then turns metal into alternative assets investments instead of the direct place investors go to for the need of safe haven.
Gold currently trades at a price of $1,576.11 an ounce, a .3 percent decline. The decline did occur after a great fluctuation of gold price which took place in last week’s gold price market; prices rallied 1.7 percent to $1,583.20.
The decline in gold value has a positive correlation to the US currency. As David Lennox, a analyst suspects, U.S. Currency are gradually growing because people has no better place to invest their money. He also mentions that U.S economy is in a better shape relative to other places.
Written by: Victor To