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Katherine Judge and Taylor Rochwerg, analysts at CIBC, point out that a weaker US dollar on the horizon prefaces higher gold prices.  

Key Quotes:  

“The correlation between the price of gold and DXY has strengthened over the course of the past year, but at the same time, other traditional drivers of gold – inflation and interest rates – have become less important in guiding gold prices.”

“Our forecast for a weaker USD over the course of the year should therefore work to extend gains in gold, while a relatively stable interest rate and inflationary environment should work to limit volatility in the price of gold.”