Gold is supposed to be a haven, a place for investors to turn during tumultuous times.
But in the middle of a trade war, gold has fallen into a correction, down more than 10% from its high for the year.
Why has the price fallen lately? Simply put, it’s the strong US dollar.
Expectations for more interest rate hikes by the Federal Reserve have helped lift the value of the currency.
A stronger dollar often is a bad thing for gold because it makes the metal more expensive for international investors.
via CNN
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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