Why is dollar and gold inversely correlated?

Question

Why is dollar and gold inversely correlated?

Answer 1

Because you buy gold with dollars. Therefore, if the dollar weakens, you need more dollars to buy gold. If it strengthens you need less. Its a necessary trade off.

Answer 2

Market conditions, value of "money" and exchange rates, supply of commodity - Au + $, (gold and dollar). Mostly based on how fast you can get the actual gold, try it!

Answer 3

The reason the dollar and gold are inversely related is because gold is a dollar denominated commodity. As the price of gold increases the value of the dollar relative to it, conversely, as the value of the dollar decreases it takes more dollars to buy an ounce of gold raising the relative price level.

Answer 4

Supply and Demand...

Commodities - metals, fuels, grains, sugar, etc. - are predominantly traded in US currency around the globe.  Consequently, as the value of the dollar fluctuates up, commodities drop in value, and as the dollar weakens, commodities go up.  It is an inverse relationship for the foreseeable future.