Alchemist, Issue 66, Page 16
2 PagesPosted: 27 Apr 2012Last revised: 27 Jan 2013
See all articles by Fergal A. O'Connor
Fergal A. O'Connor
University College Cork
Brian M. Lucey
Trinity Business School, Trinity College Dublin; Jiangxi University of Finance and Economics; Abu Dhabi University - College of Business Administration; Ho Chi Minh City University of Economics and Finance
Date Written: April 25, 2012
Abstract
This article examines the negative relationship between gold and the US dollar. It considers the argument that a weaker dollar makes gold cheaper, increases demand for gold, which in turn drives up the price, giving gold and the dollar their negative relationship. The conclusion is that whilst this provides an explanation of the observed reality, there may be another reason.
Keywords: Gold, US Dollar, Exchange Rates, Trade Weighted Exchange Rates
JEL Classification: F00, F30, F31
Suggested Citation:Suggested Citation
O'Connor, Fergal A. and Lucey, Brian M., Gold’s Currency Characteristics and its Negative Relationship with the US Dollar (April 25, 2012). Alchemist, Issue 66, Page 16, Available at SSRN: https://ssrn.com/abstract=2046044 or http://dx.doi.org/10.2139/ssrn.2046044
Fergal A. O'Connor (Contact Author)
University College Cork ( email )
College Road
Cork
Ireland
Brian M. Lucey
Trinity Business School, Trinity College Dublin ( email )
The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)
Jiangxi University of Finance and Economics ( email )
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Nanchang, Jiangxi 330013
China
Abu Dhabi University - College of Business Administration ( email )
PO Box 59911
Abu Dhabi, Abu Dhabi 59911
United Arab Emirates
Ho Chi Minh City University of Economics and Finance ( email )
59C Nguyen Dình Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam
