4 thoughts on “Under what circumstances, the relationship between gold is positively related to the US dollar. Under what circumstances, the relationship between gold and the US dollar is negatively related”
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Gold is positively related to the US dollar. Under what circumstances, the relationship between gold and the US dollar is negative: there are three main reasons: First, the US dollar is the pillar of the current international currency system. The US dollar and gold are the most important reserve assets. Stability weakens gold as a reserve asset and value preservation function. Secondly, the US GDP still accounts for 1/4 of the world's GDP. The total foreign trade is the first in the world. The world economy is deeply affected by it. The price of gold is obviously a counter -proportion relationship with the world economy. Third, the world's gold market is generally bid at the US dollar, so the depreciation of the US dollar will inevitably lead to rising gold prices. For example, at the end of the 20th century, the price of gold entered a trough, and people threw out gold, which had maintained growth with the US economy for 100 months, and the US dollar was closely related. So this does not have a strict and complete proportional relationship.
In the case where other influencing factors do not change greatly (such as war, the demand for gold suddenly increases), because gold is priced from the US dollar, when the US dollar depreciates, that is, the value of gold cannot truly reflect the real price of gold due to the depreciation of the US dollar. The relationship between gold and the US dollar is negative
Is when the factors affecting the price of the US dollar and the fact that the factors affecting the demand of gold changes, the relationship between the two relationships is positive
These are all performances in specific circumstances, and generally present it in general, and in general, they are present. Negative relationship
Under the circumstances of the US dollar, the weak US dollar disadvantaged must trigger the golden risk aversion function. When the market goals are placed in the European debt crisis, the recovery of the US economy may be more inclined to use the US dollar as a hedging currency, thereby suppressing the euro And other risk investment varieties, after all, the US dollar is currently the safest and only currency choice.
In the era of gold linking with the US dollar, there is only negative correlation and no positive!