Gold logs largest daily gain since late October - MarketWatch: "A weaker dollar can provide a lift to commodities priced in the currency, making them relatively cheaper to investors using other monetary units.
Some traders said that a bounce in gold and the weakness in the dollar are a function of both of those assets being aggressively traded by investors ahead of a rate increase.
The “dollar weakness is being chalked up to the October [Fed] minutes’ emphasis on a slow path of policy normalization,” wrote analysts at Credit Suisse in a Thursday research note.
In the case of gold being aggressively sold, Colin Cieszynski, senior market analyst at CMC Markets, told MarketWatch.
“Gold and [the U.S. dollar] have been more aggressively pricing in a rate hike than other markets so I think we are getting common ‘enter trade on rumor exit on the news’ type of response,” said Cieszynski."
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