Gold prices and the U.S. dollar move inversely to each other
In financial spread betting strategy, one thing to keep in mind is that gold prices and the U.S. dollar move inversely to each other. For the most part, when the U.S. dollar is weak against the euro, gold prices head up, hedging against dollar weakness. With the ZEW showing investor confidence down right now, the euro is showing weakness, and this boost to the U.S. dollar is erasing gains for gold prices in commodities trading. Bloomberg reports on gold prices and the U.S. dollar:
``Once the German numbers came out, that helped the dollar
and this is why gold is down,'' said Wolfgang Wrzesniok-Rossbach,
head of marketing and sales at Hanau, Germany-based Heraeus
Metallhandels GmbH.
