International gold and crude oil prices are priced in US dollars, and the fluctuation of US dollar exchange rate will directly trigger the same fluctuation of gold and oil prices.
High oil prices will aggravate inflation and lead to an increase in the price of gold.
The fluctuation of crude oil price directly affects the operation of gold in oil-producing countries, which leads to the fluctuation of gold price.
Gold and oil are positively correlated, that is, the price of gold and oil are usually positively correlated. The rise in oil prices indicates that the price of gold will also rise, and the fall in oil prices indicates that the price of gold will also fall.
The fluctuation of oil prices will directly affect the development of the world economy, especially the American economy, because the total economic output and crude oil consumption of the United States are the highest in the world, and the economic trend of the United States will directly affect the changes in the quality of American assets, thus leading to the rise and fall of the dollar and the rise and fall of the price of gold.
According to the estimation of the International Monetary Fund, for every $5 increase in oil prices, the global economic growth rate will decrease by about 0.3 percentage points, while the US economic growth rate may decrease by about 0.4 percentage points. When oil prices continued to soar, the International Monetary Fund immediately lowered its forecast for future economic growth.
Oil prices have become a "barometer" of the global economy. High oil prices also mean that the uncertainty of economic growth increases and inflation expectations rise, which in turn pushes up the price of gold.
In the relationship between gold, oil and dollar, the price of gold is mainly denominated in dollar, and so is oil. In the early 1970s, after the collapse of the Bretton Woods system, the world monetary system built after World War II, the prices of gold and oil were separated from the fixed exchange rate with the US dollar, and the prices soared.
There are both close ties and mutual checks and balances between them, and their relative stability is hidden in their mutual fluctuations. In the apparent stability, there is also a relationship between gold, oil and the dollar. The price of gold is mainly denominated in dollars, and so is oil.
Negative correlation between dollar and oil
For a long time, the American economy has relied on two pillars: oil and the dollar. By virtue of the coinage right of the US dollar and its monopoly position in the international settlement market, it has mastered the pricing right of the US dollar, and placed nearly 70% of the world's oil resources and major oil transportation channels under its direct influence and control through super military forces, thus controlling the global oil supply and grasping the oil price. In the long run, the dollar depreciates and oil prices rise; When the dollar hardened, oil prices showed a downward trend.