What is The Relationship Between Gold and the U.S. Dollar?

Ever wanted to know about the relationship between Gold and the USD? Get up-to-date information and reliable answers to your bullion and precious metals related questions here at ModernCoinMart's Complete Bullion Resource Center.

Gold is unique since it can be viewed as both a commodity and a currency. In fact, gold is one of the oldest means of exchange in human history. While there is no official tie between gold and the U.S. dollar, the two often work inversely to each other. That is to say, when the value of the U.S. dollar decreases, the price of gold typically increases. If the dollar increases in value compared to other global currencies, then gold prices often decrease because they become more expensive in those other currencies. 

Ultimately, gold is an asset and has intrinsic value. That value can fluctuate and may not appreciate in the same way as other investments that are more closely tied to interest rates. But it is frequently viewed as a hedge against inflation, so if you’re worried about savings when the dollar is down, gold may be a valuable asset to have.

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