Comments on: Gold futures and Dollar value? http://goldcoinsinvestments.com/index.php/gold-futures-and-dollar-value/ Information About Investing In Gold Coins Thu, 23 Jul 2009 13:36:55 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: src50 http://goldcoinsinvestments.com/index.php/gold-futures-and-dollar-value/comment-page-1/#comment-312 src50 Sat, 04 Jul 2009 07:39:45 +0000 http://goldcoinsinvestments.com/index.php/gold-futures-and-dollar-value/#comment-312 <a href=""></a> No, it is not "sure to remain high in value." Precious metal commodities are very volatile.

No, it is not “sure to remain high in value.” Precious metal commodities are very volatile.

]]> By: Nick Z http://goldcoinsinvestments.com/index.php/gold-futures-and-dollar-value/comment-page-1/#comment-311 Nick Z Wed, 01 Jul 2009 01:50:21 +0000 http://goldcoinsinvestments.com/index.php/gold-futures-and-dollar-value/#comment-311 <a href=""></a> The price of gold floats freely in commodity markets. Which means that it's not linked to any currency directly. The price of gold depends on the supply and demand, just like the price of oil and other commodities depends. The price of gold is usually inversely related to the US dollar value. Because when the US dollar falls in value, then gold (which is priced in US dollars) becomes cheaper for the rest of the world to buy. This naturally increases the demand for gold and makes it's price go up in US dollars. And the reverse happens when the US dollar rises in value. Gold becomes more expensive for the rest of the world to buy. Which decreases world demand for gold and causes its price to go down in US dollars.

The price of gold floats freely in commodity markets. Which means that it’s not linked to any currency directly. The price of gold depends on the supply and demand, just like the price of oil and other commodities depends.

The price of gold is usually inversely related to the US dollar value. Because when the US dollar falls in value, then gold (which is priced in US dollars) becomes cheaper for the rest of the world to buy. This naturally increases the demand for gold and makes it’s price go up in US dollars. And the reverse happens when the US dollar rises in value. Gold becomes more expensive for the rest of the world to buy. Which decreases world demand for gold and causes its price to go down in US dollars.

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