The relation of the Dollar Index to the gold price is always interesting, one goes up and the other goes down, mostly. The chart below shows that the gold price has lost value due to the strength in the Dollar Index and this trend is still robust.
The question which comes to mind is: why is the Dollar Index still strong if the Fed isn’t going to change its monetary policy?
The SPDR Gold Shares (GLD) was trading at $120.33 per share on Wednesday afternoon, down $0.03 (-0.02%). Year-to-date, GLD has declined -2.68%, versus a 7.40% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Forbes.