The gold price and the gold price rise for some time. Instead the dollar weakens gradually. The gold is not behaving like a metal / commodity, but as a coin / currency antithetical to the dollar. The trend of gold price and its price may change the vision of the role of gold in a portfolio.
For a long time, we’ve all heard that gold is a commodity, not unlike silver, wheat or pork bellies. The gold price moves apparently with inflation, which historically pushes the prices of raw materials. Strange, then, that the high price of gold and its price is not decreased in response to U.S. inflation data. The index of consumer prices from July marks a fact anchored inflation to 1.2% in the last 12 months, excluding seasonal adjustments. The gold price has not even responded to the statement by Mohamed El-Erian, Pimco’s chief executive, who recently said the U.S. on “the road of deflation.” Gold price insensitive to inflation / deflation and correlated to the dollar and Swiss franc. Gold acts as an anti-dollar currency.