The rise of the dollar means that the dollar has become valuable. Because the intrinsic value of metals remains unchanged, American futures are priced in dollars, so each dollar can buy more futures, and relatively speaking, futures will fall in price. Moreover, the future of all countries in the world is consistent with that of the United States, so they have fallen together. On the contrary, the dollar fell, and each dollar can only buy less futures, so futures rose.

But the most essential thing that determines the futures price is the relationship between supply and demand. Supply and demand decide everything! There are many factors that affect the relationship between supply and demand of futures prices, including macroeconomic factors, interest rate levels, irresistible factors (disasters) and so on.

The relationship between the dollar and the exchange rate

Exchange rate refers to the exchange rate at which one country's currency is converted into another country's currency, that is, the price of another currency expressed in one currency. Generally speaking, the price of another currency is expressed in US dollars, so when the US dollar falls, each unit of US dollars can only be exchanged for less RMB, and correspondingly, each unit of RMB can be exchanged for more US dollars, that is, the exchange rate of US dollars falls and the exchange rate of RMB rises.

Relationship between exchange rate and futures

The decline in the exchange rate of the US dollar means that the US dollar depreciates and the futures price rises. On the contrary, the rise of the US dollar exchange rate means that the value of the US dollar increases and the futures price falls.