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Do you agree that when Gold price gows up, USD value drops down? why do you think this happens?

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تم إضافة السؤال من قبل steve khawaja , Director of Finance, MENA region , DAI Global
تاريخ النشر: 2013/09/22
Sankar potty
من قبل Sankar potty , CFO , Salem Mohsen Al Harty Estt.

This is a function of  the basics of economics--Demand and Supply.

As the Supply of USD increases or remains at a statically same level, a portion of the same would be diverted to  mid to long-term investment opportunities.  Gold is one such opportunity and as the demand increases the price goes up;  and due to excess supply of USD, the value of the same goes down.

 

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