What impact does the US dollar exchange rate have on gold futures?
What impact does the US dollar exchange rate have on gold futures?Now there are many gold futures investors, and people's attention to gold futures is also rising. For investors, the factors affecting gold futures are very important.
There is a negative correlation between us dollar and gold futures price, and the change of US dollar exchange rate has a great impact on gold futures market. The Bretton Woods system established after the second world war has a deep relationship between the dollar and the gold price. It is of great significance to link the dollar and the gold price. So, how does the US dollar exchange rate affect gold futures.
The international gold market is mainly priced by US dollar, and the trend of US dollar has a high reverse linkage with the price of gold. US dollar is recognized as a hard currency in the world, and both US dollar and gold are international reserve assets. The strength of US dollar weakens the status of gold as reserve assets and has the function of maintaining value, and the function of gold as a hedge is weakened. On the contrary, the depreciation of US dollar is bound to be accompanied by the downturn of the stock market and inflation As a result, gold's function of keeping value is reflected again.
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