The Secret Between USD and Gold

The reason why this will happen is because Gold is priced in U.S. Dollars. Thus, if the value of the U.S. Dollar goes down, more of those Dollars are needed to buy the same amount of Gold, so the price of Gold instantly goes up; conversely, if the U.S. Dollar goes up, the price of Gold goes down. It's a direct, mathematical relationship. To understand the relationship more precisely, the Dollar has an "inverse" affect on Gold. While it's true that a 1% drop in the Dollar would basically mean a 1% rise in Gold.

Gold
There is sometimes that Gold will be outperform than the USD it is because Gold has its own supply and demand fundamentals as well. These are factors affecting the Price of Gold that have less of an affect on the U.S. dollar such as changes in demand for gold for jewelry or for industrial or dental applications, increases or decreases in mining and others.

US Dollar
The USD used to be considered the safe haven because of US being the largest and the most reputable country but not anymore and many people are shifting they money towards Gold because it can resists against worldwide economic shocks or tensions.

What is Commodities?

Ever wonder the oil that you used that get your cars moving and the bread you have every morning come in the first place before they even turning into a finish product?

Commodities
All of the natural resources such as oil, coffee, silver, etc are called commodities. Everyday there is people making $$ by betting or speculating on whether there is more or less of those things available in the future.

How to Trade?
Most people trade commodities using futures by buying and selling those contracts to deliver a set amount of a commodity, such as oil from West Africa, on a set date for a set price.

How it Changes Prices?
Changes in

• Weather
• Politics
• People's expectations about what's going to happen - Speculation
• Supply & Demand