Gold and US Dollar move in opposite directions. So, why are they gaining in strength in tandem?
US $ is gaining strength against the world currencies. Currencies in the other nations are becoming weaker due to reduced exports and due to less foreign currency remittance. Than is pushing US $ higher relatively while US $ should be falling due to deficit caused and will be caused by stimulus package.
Developing and few developed countries currencies are falling. Investors are flocking to gold as a safe heaven investment. Due to this the demand; hence, the price of gold is rising.