?Kit Gold Bullion Index - Why it Can't Be Ignored

?Kit Gold Bullion Index - Why it Can't Be Ignored  Before introduction into the world of commerce Kit gold bullion index , we have always wondered how much the price of gold has been influenced by the weak dollar and the way it was heavily influenced by force gold itself . Now the index Kit gold bullion gives us the correct answer . The index uses the U.S. dollar as the sole determining factor , but includes the weighted basket of currencies.  How U.S. dollar strength affects the price of gold  When the dollar is strong, it takes a few dollars to buy gold. On the other hand, when the dollar is weak , it takes more dollars to buy the same amount of gold. Therefore, fluctuations in the price of gold continues to reflect the change in the value of the dollar.  The other factor is the supply and demand of gold itself . When supply or demand for gold rises and falls , but also affects the price of gold. However, in the past , we could not tell how it is influenced by a factor and how the other . The KG changed all that.  The Kit Gold Index ( KG ) divides the change in the price of gold in two main parts.  1) An element that indicates how much of this change is the result of the strength or weakness of the U.S. dollar .  Two . ) The other component shows how the change in price is the result of supply and demand for the product itself.  It was observed that changes in both the price of gold are the result of the strength and the weakness of the dollar , the same rate is also present in other dollar- denominated commodities .  Kit Gold Index and its relevance  The aim of KG is whether the value of gold is intrinsically reflects changes in the value of the dollar, or a combination of both. The KG is the price of gold is measured not only in terms of U.S. dollars, but in terms of the weighted basket of currencies including Euro , Japanese yen , British pound , Canadian dollar , Swedish Kona and Swiss franc .  Therefore the Kit Gold Index is more reliable than other indicators of gold we have raised in the past .

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