goldmoney.com / By The GoldMoney News Desk / February 8, 2013
Given the almost exclusive media emphasis on the gold price in US dollars, it’s easy to forget the sometimes-wide divergence in performance of other national currencies versus gold. The Japanese yen and British pound are providing a good example of this at the moment; gold is up around 5% since late December in sterling terms, and has posted gains of roughly 15% over the same period against the yen. In comparison, gold has gained less than 1.5% against the US dollar in that time-frame.
A rising tide lifts all boats, just as a sustained rise in the US dollar gold price will accompany gains in gold priced in other currencies (as has been the case ever since the abandonment of the gold standard). But in the short-term, gold can act as an important hedge against weakness in currencies other than the dollar – as this decadal gold price performance chart from James Turk makes clear.
