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Published August 2011 | public
Journal Article

Gold and the Dollar (and the Euro, Pound, and Yen)

Abstract

Usually, gold and the Dollar are negatively related; when the Dollar price of gold increases, the Dollar depreciates against other currencies. This is intuitively puzzling because it seems to suggest that gold prices are associated with appreciation in other currencies. Why should the Dollar be different? We show here that there is actually no puzzle. The price of gold can be associated with currency depreciation in every country. The Dollar price of gold can be related to Dollar depreciation and the Euro (Pound, Yen) price of gold can be related to Euro (Pound, Yen) depreciation. Indeed, this is usually the case empirically.

Additional Information

© 2011 Elsevier. Received 26 June 2010, Accepted 14 January 2011, Available online 22 January 2011.

Additional details

Created:
August 22, 2023
Modified:
October 20, 2023