How Dollar Affects Commodity Market

Commodity Metals Updates-6 November 2015

Most of the people are trading in gold, because gold is a rare metal used as money and considered as a hedge consist of currency failure, recession, and other uncertainties factors. The fluctuation of gold price is affected by many factors; the US dollar index is the one of them.

Trading in Commodity like Gold, Silver and others mainly done in US currency, so the weaker the dollar is the more costly the gold for other nations to purchase. Also, when the dollar starts to lose value traders who have done trading in FOREX will also get affected.Then investors have to look for a good alternative investment. Gold’s value fluctuates as its strenght depends upoun on the US dollar and the US economy.

Anyone who trade on gold and currency markets, will closely find that the Gold Price and Dollar Index generally trend in negative correlation.

People who will trade with professionals or research experts will have lesser chances of failure as compare to those self traders and can dig out more profit from the market.

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