Gold and oil have a complicated relationship with the dollar

Gold and oil have a complicated relationship with the dollar

The most common excuse for the recent strength in the prices for gold and oil in the wake of the Federal Reserve’s meeting last week has been the drop in the U.S. dollar, but the two commodities don’t always have an inverse relationship with the greenback.

The general rule of thumb has been that commodities priced in dollars often move in the opposite direction of the currency, as moves in the U.S. unit can influence the attractiveness of those commodities to holders of other currencies.



“All other things being equal, a rising dollar means a falling gold price,”