Malaysia Brazil Switzerland Thailand Philippines Australia Indonesia India Israel Saudi Arabia The tradeweighted value of the dollar creates an indicator that shows whether the dollar is gaining or losing purchasing power on average versus its trading partners When it comes to gold the yellow metal has a negative relationship with the tradeweighted value of the dollar This means that when other currencies gain value against the dollar so does gold In this sense gold acts like other currencies so when the dollar loses value against most currencies it also loses value
against gold This highlights the negative correlation between them and not the fundamental relationship where the value of the dollar affects the value of gold Gold As An Internationally Traded Currency For many analysts the negative correlation between the dollar Australia WhatsApp Number and gold is not due to the fact that movements in the value of gold are usually expressed in dollars Instead this is because gold is an internationally traded currency As Fergal OConnor and Dr Brian Losey explain in their article Golds Negative Correlation with the US Dollar On average the value of gold expressed in terms of one currency such as the pound will move with the value of other
currencies expressed in terms of the pound a binary exchange rate This would then give us a negative relationship between gold expressed in pounds and the tradeweighted value of the pound As they say Most of the time the correlation between the returns on gold expressed in a currency and the returns on the tradeweighted value of that currency is negative more than of the time for each currency In this regard gold returns in a currency have a negative relationship with tradeweighted currency returns in the short medium and long term For them this shows that the negative relationship between gold and the value of the dollar underscores golds role as an internationally traded currency rather than a way to.
發表於 2024-3-5 17:58:51
