What is the relationship between the dollar index and gold?
What is the relationship between the dollar index and gold
1. Internationally, gold has always been priced in US dollars. The influence of US dollar on gold price is mainly reflected in two aspects. One is that US dollar, as the pricing currency in the international gold market, has a negative correlation with gold price, that is, assuming that the value of gold itself does not change and US dollar falls, then gold price will rise;
2. On the other hand, gold, as an alternative investment tool for us dollar assets, when the US dollar is strong, the opportunity to invest in US dollar appreciation increases, and investors will naturally chase us dollar; on the contrary, when the US dollar is weak, investors will tend to invest in gold, and the price of gold will be strong;
3. Therefore, it is generally believed at home and abroad that the international gold price is negatively correlated with the US dollar index, that is, when the US dollar index rises, the international gold price falls; when the US dollar index falls, the international gold price rises.