Gold Could Rise Despite Strong Dollar, Rising Rates: Sterne

Gold finally got some respite from the dollar’s onslaught. The dollar weakened against the yen and the euro in a likely technical correction from an overbought zone after Friday’s powerful US jobs data sent the US dollar index soaring to a high of nearly 87. With the recovery in the US economy looking more and more real, markets are factoring in a change in the Fed’s ultra-low interest rate policy – as soon as July 2015. Rising interest rates are manna for the US dollar as a currency. Strength in the dollar is negative for gold, commodities and crude because…