So gold is directly proportional to commodities and inversely proportional to the dollar. This is a simple economic principle, but in fact it is not, otherwise the whole world should be rich.
If you want to speculate in dollars or gold or commodities, I suggest that you think the three are not related.
There are three main reasons why the dollar can affect the prices of gold and silver so strongly:
1. USD is the pillar of the current international monetary system, and USD and gold are the most important reserve assets. The strength and stability of the US dollar weakened the position of gold as a reserve asset and a value-preserving function.
2. The GDP of the United States still accounts for 1/4 of the world GDP, and the total foreign trade volume ranks first in the world, which deeply affects the world economy, and the price of gold is generally inversely proportional to the quality of the world economy.
3. The world gold market is generally priced in US dollars, so the depreciation of the US dollar will inevitably lead to an increase in the price of gold. For example, at the end of the 20th century, when the price of gold reached a low point, people threw out gold in succession, which was closely related to the continuous growth of American economy 100 months and the strength of the US dollar.
From the above explanation, we can easily draw the conclusion that gold rises when the US dollar index falls, while the US dollar index is often on the way up when gold falls, and gold, silver and the US dollar are negatively correlated for most of the year.