| While gold price trends mostly stem from changes in supply and demand, that's not the full story. Sometimes the value of the U.S. dollar changes the gold price – and this can cause a misleading view of the true value of gold…
You see, most of us track gold priced in U.S. dollars. As the dollar gains strength, it takes fewer of them to buy the same quantity of gold. The opposite is true when the dollar weakens. Part of the reason gold prices move up or down is they reflect this change in U.S. dollar value. So higher gold prices do not always mean higher demand...............................................Full Article: Source
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