Negative U.S. Dollar Correlation Is Driving Gold Prices: Analyst

Gold prices and the U.S. dollar continue to be dueling forces in the market, with one of the big narratives centering around tumbling gold prices as the U.S. dollar continued to strengthen. The dollar reversed course last week after the latest Consumer Price Index reading, but then this week marked yet another reversal, as the dollar began strengthening again while gold prices plunged. Analysts seem to expect the dollar to continue strengthening while gold prices fall as the market zeros in on the negative correlation between these two assets, highlighting its importance over other factors impacting gold prices.