Gold and its negative correlation with the US Dollar

Gold and its negative correlation with the US Dollar

A lot of myths and rumors surrounding the price of gold and its dependencies. One of these complex relationships, the negative correlation with the US Dollar. This is historically in the long term, see graph 1; source: Thomson Reuters) prove (. In phases of non-existence, it is regularly speculated about whether this was now over, it is a return to this, however, again and again.



But where does this come from? For this connection there are some factors. The main determining factor is definitely that Gold is usually traded in USD. Thus, the relationship of these two currencies to each other is very strong. In addition, Gold is considered a reserve currency. Gold is not only precious metal but also currency at the same time. This is also the reason why Gold is a currency-ISO-Code (XAU).

Read more in: The greed for Gold

Article image © Rainer Sturm /

Source Correlation Chart: Thomson Reuters