Interest rates in America are no longer influencing gold performance, while the US dollar movement is again becoming a strong indicator of the price direction of the yellow metal, the World Gold Council (WGC) has said. However, over recent years, short-term movements in gold have been more heavily influenced by US interest rates and expectations of policy normalisation. Historically, a weak dollar tends to provide a stronger boost to gold's performance than the drag created by a strong dollar." Thus, the WGC said, gold's behaviour is best understood as a broad fiat currency hedge rather than simply a dollar hedge. In such instances, gold and the dollar have tended to move in sync, with both benefiting from safe haven inflows," it added.

Source: dna April 24, 2018 06:22 UTC