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However, this inverse relationship isnt as precise as it used to be under the gold standard. The inverse relationship remains because: However, its important to understand that its possible for the U. Georgia Stock Exchange Gold Rates During this time, the value of a unit of currency was tied to the specific amount of gold.

Forex Trading Millionaires Strategies Of Teaching Find the latest business news on Wall Street, jobs and the economy, the housing market, personal finance and money investments and much more on ABC News Inverse relationship As the above chart shows, theres an inverse relationship between the trade-weighted U. This would cause investors to flock to safer assets-the U.