As the world's quasi-currency, gold in the major global gold markets is quoted in US dollars. Therefore, if central banks reduce their gold reserves, they will increase their dollar reserves accordingly, and gold is negatively correlated with the dollar. That is, the dollar goes up, gold goes down, the dollar goes down and gold goes up.

After the 1970s, the proportion of the American economy in the world economy began to decline, and the influence of the US dollar was also declining. In recent years, due to the rise of China and India, the world economic map is changing with each passing day. The position of the United States in the world is being influenced by China, Indian, Russian and European Union. As the only reserve asset other than gold, the dollar's position is no longer stable. In order to avoid the risks brought by the depreciation of the US dollar, many countries have begun to implement the diversification system of reserve assets.

In short, we look at the relationship between the dollar and gold from three aspects:

One: the dollar and gold are negatively correlated as a whole.

Second, gold and the dollar's relations will show signs of weakening in the coming year.

Third, the position of the US dollar in the world currency is an important reason that affects the relevance of gold and the dollar.