The price of gold has been soaring recently in just about every major currency except the U.S. dollar. In fact, gold’s price hit new all time highs in Japanese Yen, Euros, and British Pounds over the last seven days.
The party got started with the Euro and Pound as gold hit new all times high on October 27th when it briefly touched €1,902 and £1,659 respectively. The Yen followed suit on October 31st as the spooky day witnessed gold rising to ¥303,365 to mark an all time high. It appears to be extremely difficult for gold to hit new all time highs when priced in U.S. dollars because of the status of the United States in global trade. It could also be due to crafty monetary policy, the U.S. selling more dollar denominated bonds to countries abroad, and an increase in exports.
As far as exports go, the U.S. and Japan managed to grow exports over the last 12 months whereas the Eurozone and U.K. have suffered declining exports over the same time period. In addition, foreign holdings of U.S. treasuries in August hit the highest level since December 2021 which means there’s a lot of countries holding U.S. bonds right now and receiving dollar interest payments. These factors appear to be helping the U.S. dollar hold its own against the shiny yellow metal.