Gold: Prices driven almost entirely by US Dollar movements - CIBC
|Katherine Judge and Taylor Rochwerg, analysts at CIBC, point out that a weaker US dollar on the horizon prefaces higher gold prices.
Key Quotes:
“The correlation between the price of gold and DXY has strengthened over the course of the past year, but at the same time, other traditional drivers of gold - inflation and interest rates - have become less important in guiding gold prices.”
“Our forecast for a weaker USD over the course of the year should therefore work to extend gains in gold, while a relatively stable interest rate and inflationary environment should work to limit volatility in the price of gold.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.