Hello,
I would like to understand the influence of exchange rates on the price of gold. Since gold is indexed to the dollar, gold ETFs in euros are also indexed to the price of gold in dollars but are subject to the exchange rates. I'm based in France.
If we assume that the gold storage location (US vs. Europe) is not taken into account, what is the difference between a gold ETF in USD and a gold ETF in EUR, knowing that the outperformance of the gold ETF in USD vs. the one in EUR will be reduced (because it is subject to the current exchange rates) when I have to exchange my dollars for euros?
I'm also wondering if I shouldn't position myself in a hedged gold ETF in EUR, given the current economic situation and the potential fall of the dollar.
Thank you for your answers.