Sorry for a newbie type question, but I noticed that on Kitco, they display: Gold price Change due to Weakening of USD +5.10 Gold price Change due to Predominant Sellers -9.70 Gold Price: Total Change -4.60 But isn't the international price of gold always in dollars anyway? Surely, in this case, the strength/weakness of the dollar would affect the gold price in euros, pounds etc, but the gold price in dollars would not be affected. Er..or...?? Steve :rollling:
The simple explanation is if you look at gold like a currency and plug it in to a cross rate table you will see it moves in different directions based on the currency but the table must balance. Weakening of the USD means the dollar index is down, selling is just that, selling, supply for sale outstripped demand that day.
Thanks for that. In fact, soon after sending my question, my second brain cell came online and I did a quick search and realised what was going on. So, in a scenario thus: Gold price Change due to Weakening of USD +10 Gold price Change due to Predominant Sellers -10 Gold Price: Total Change 0.00 Gold would be seen as going down even the actual price in dollars hasn't changed. So, I assume that the important info from Kitco is "Gold price Change due to Predominant Sellers" since it gives a truer indication of where gold is going. Hope I've got that right! Thanks again, Steve
Steven, welcome to CoinTalk. I don't pay much attention to Kitco's calculation. I'm not sure that it is good for anything.
