Gold and the Dollar IndexInvestors of gold and currency traders may want to familiarize themselves with the relationship of gold to the U.S. dollar and other currencies. Because the U.S. dollar is unbacked by gold and other commodities and is backed only by confidence - a psychological element - the U.S.- This article turns the conventional view of the dollar upside-down and has people thinking of gold as the point of reference, or numeraire. In this light, gold's moves are merely the moves of the dollar in relation to the yellow metal, which has a more stable supply from year to year based on mining output and cannot be printed as easily as paper dollars.
Gold and the U.S. Dollar
Gold and the dollar have an interesting relationship.
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