Rare! The US dollar and gold rise together
Since October, while gold (yellow line) has surged, the US dollar has not declined but has rarely risen alongside it (blue line). Clearly, behind the rise in gold, investors are hedging against not only a weakening dollar but also the US fiscal crisis. In fact, other countries in Europe and America are also facing poor fiscal situations, such as France, which cannot seem to change its prime minister successfully
Since October, while gold (yellow line) has soared, the US dollar has not declined but has rarely risen alongside it (blue line).
Clearly, behind the rise in gold, investors are hedging against not only a weakening dollar but also the US fiscal crisis. In fact, other countries in Europe and America are also facing poor fiscal conditions, such as France, which cannot seem to change its Prime Minister.
