Gold and greenback prices have an inverse relationship. As the dollar strengthens against other currencies, gold prices will fall as they become more expensive in other currencies, reducing demand. As with other publicly traded assets, the price of gold fluctuates every day at the whim of supply and demand market forces. The price may drop on any given day, simply because there were more gold sellers than there were buyers of gold on the stock exchanges that day.
Gold prices can also move as investors react to news from other markets, such as changes in interest rate policy.
