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Audacity618
Nov 2, 2014 5:54 PM

Short Gold on Strong Dollar  Short

Gold FuturesCOMEX

Description

Gold is a dollar-denominated commodity, growing more expensive for other currency-holders to purchase when the greenback gains. This tends to lead to a fall in demand and in price. I added a USDJPY as one currency pair example to see its correlation to Gold.

Also a lack of US inflation does not help Gold, as Gold is used as a hedge against a rise in CPI.
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