The price of gold is also largely dollar dependent. Historically, there has been a negative correlation between the performance of the dollar and the price of gold. Strengthening dollar has been synonymous with weak gold prices and a weak dollar has been synonymous with strong gold prices. That explains why the price of gold has been under pressure ever since the US$ decisively moved above the 100 mark. This influence gets more pronounced because all commodities are denominated in dollars and hence this relationship has come to stay.