The price of gold, as tracked by State Street's Gold index ETF ($GLD), has broken into a higher price range, even as the value of the U.S. Dollar index ($DXY) has also risen. That is very significant because gold is most often priced in dollars, which means that mathematically the price of gold is inversely correlated to the greenback. If the dollar is rising at the same time as gold prices, that signals that demand for the metal is growing. $XAUUSD The chart below shows how the dollar index moved lower while the price of gold held steady. However, lately the price of gold has been on the rise while the dollar index is also rising. These moves make sense given that investors are feeling both opportunistic and nervous nowadays. It also makes sense that these conditions could likely continue for the next few weeks.
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