PRESS ROOM
Gold and Dollar appreciate at the same time, indicating safe-haven demand
Monday 17th February '20
Usually the US Dollar and gold (in dollar terms) move in opposite directions. That is a long-term relationship that is confirmed in WisdomTree’s gold model. However, when investors are seeking safe-haven assets, they can move in the same direction. Both the US Dollar and gold are seen as safe-haven assets. Since the beginning of this year, the US Dollar basket (DXY) has appreciated 2.8% and gold has risen by 1.2% (source: Bloomberg spot prices 14/02/2020). Gold had started to rise before the Dollar, so when looking at price appreciation since the beginning of December 2019, gold is currently up 7.6% compared to 0.85% for the Dollar basket (source: Bloomberg spot prices 14/02/2020).