For the first time in history, gold can be purchased like any listed stock at select stock exchanges

of the

THE DOLLAR-SHARE MARKET RELATIONSHIP

Determinants causing direct relationship between Dollar and Stock Market: Differentials in Inflation  Differentials in Interest Rates  Current-Account Deficits

Determinants Causing Inverse relationship between Dollar and Stock market: 
Excess buying or selling by foreign investors

THE REASON FOR THE INVERSE RELATIONSHIP BETWEEN GOLD AND THE DOLLAR The reason for the inverse relationship between gold and the US dollar is because both are seen as a global, worldwide currency. Pre 1971 the two colluded as a world gold standard whereby the US dollar and gold were pegged together, means gold and dollar both were used as international currency . Post 1971 World bank made US dollars as international currency.

FACTORS AFFECTING GOLD MARKET: Weak US Dollar Growth in Demand for Jewellery Increase in demand for exchange-traded paper backed products

Sign up to vote on this title
UsefulNot useful