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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Eashoa' M'sheekha who wrote (7796)	2/22/1998 7:03:00 PM
From: Mark Bartlett	Respond to of 116837

Taurus, <<Can someone please explain to me why the US dictates the price of a global commodity when they are a minority consumer of that commodity,if in fact it is a commodity?>> The US does not set the price of gold. It was agreed some years back that the price of gold would be quoted in US dollars. The Bretton Woods Agreement of 1944 established the US dollar as the world's reserve currency. The US is "dictating" the price of gold, only in that the US dollar is strong and therefore attractive to hold as a reserve currency - more so than gold ... hence gold is reacting to the US dollar's strength. It is interesting to note, when one views gold's performance relative to other currencies, gold has help up quite well, and is some cases performed its role as a store of value - particularly in Asia. MB