Why does the price of crude oil fall when the dollar rises?
Why does the dollar rise and crude oil fall?
Why does the US dollar and gold and crude oil rise and fall together recently. First of all, let's take a look at the definition of the US dollar index: the US dollar index is an indicator that comprehensively reflects the exchange rate of the US dollar in the international foreign exchange market, and is used to measure the exchange rate change of the US dollar against a basket of currencies. It measures the strength of the U.S. dollar by calculating the combined rate of change of the US dollar and the selected basket of currencies, thus indirectly reflecting the changes in the US export competitiveness and import costs. Obviously, the US dollar index is a relative indicator. Its function is not so much to measure the value of the US dollar, but to measure the credit of the US dollar and the credit of a basket of currencies.
There are many factors that affect the rise and fall of gold, and the dollar is only one of them. In general, we can judge the trend of gold according to the rise and fall of the dollar. From the historical trend chart of the past eight years, the trend of gold and dollar index is almost like the reflection in the water. But in the case of a variety of factors at the same time, this general situation will be broken, so that the dollar and gold rise and fall together! Since 2009, gold prices have been rising and falling with the U.S. dollar for many times. US dollar and gold are both safe assets! In the case of general downturn in the world economy, the risk aversion sentiment of the market will be dominant! Therefore, there will be the phenomenon that the safe haven currencies of the US dollar and gold will rise together! Otherwise, the phenomenon of the same decline will appear when the market risk preference increases.
In terms of crude oil, the rise of crude oil price is good for gold price. Because the rise of crude oil price will bring inflation pressure, and gold, as a traditional investment tool to prevent inflation, is favored by many funds. However, in June 2005, when the price of gold was not strong, it became the focus of the dollar's rise.