A report released last week (April 23) by the World Gold Council (WGC) analyses gold performance over recent years.
In the report, the organization claims that “investors often use the direction of the US dollar as a bellwether for gold’s performance”. However, says the WGC, “over recent years, short-term movements in gold have been more heavily influenced by US interest rates and expectations of policy normalisation”.
The WGC’s expert analysis shows that “the correlation between gold and US rates is waning and that the US dollar is again a stronger indicator of the direction of price”. In their view, this trend “will continue over coming months – even while the dollar won’t explain gold’s movements entirely. Furthermore, the analysis shows that higher real rates have not always resulted in negative gold returns”.
Download the full report for pay here.
