Why Gold And The Dollar Are BOTH Rising

An unusual dynamic has taken shape over the last few months – Both the US Dollar and Gold have been rising together. Normally, such a movement would seem counter intuitive as Gold is a commodity and commodities tend to move in the opposite direction of the US dollar. There is a slight caveat, however, to the Dollar-Commodity relationship which exists during extremely rare occasions and that is gold (along with silver) doesn’t always function as a commodity. There are times when it behaves more like a currency. This is one of those times. (more)