Under normal circumstances, a sharp drop in oil prices will lead to a drop in gold prices. From the historical experience, there is a positive correlation between the price of gold and crude oil, that is, the price of crude oil rises, the price of gold rises, the price of crude oil falls, and the price of gold falls. Therefore, a sharp drop in oil prices will lead to a drop in gold prices. However, there will also be some special circumstances, which lead to the trend of gold independent of the trend of crude oil, that is, the price of crude oil has fallen sharply, while the price of gold has risen sharply. For example, when the supply of gold is less than the market demand, that is, when the supply exceeds the demand, the price of gold will rise when the crude oil drops sharply; Or the stock market is extremely poor, resulting in a large amount of funds flowing out of the stock market and entering the gold market to hedge, which will also push up the price of gold.

The Relationship among Crude Oil, Gold and Dollar

1. Among the three relationships of crude oil, gold and dollar, the price of gold and crude oil is based on dollar. The American economy has long relied on crude oil and the US dollar, and has mastered the pricing power of the US dollar by relying on the coinage right of the US dollar and its monopoly position in the international settlement market. Through the super military force, nearly 70% of the world's oil resources and major oil transportation channels are under its direct influence and control, thus controlling the global oil supply and grasping the oil price.

2. In the long run, the dollar depreciates and oil prices rise; When the dollar hardened, oil prices showed a downward trend.

3. The appreciation or depreciation of the US dollar also directly affects the change of international gold supply and demand, which leads to the change of gold price. From the demand of gold, because gold is denominated in dollars, when the dollar depreciates and gold is bought in other currencies, the same amount of money can buy more gold, thus stimulating demand, leading to an increase in demand for gold, and then pushing the price of gold higher. On the contrary, if the dollar appreciates, the price of gold will become more expensive for investors who use other currencies, which will curb consumption and lead to a decline in the price of gold.

Therefore, crude oil and gold are usually positively correlated, contrary to the dollar. In other words, gold prices and crude oil prices often interact with the US dollar. Therefore, it is not accurate that crude oil falls and gold rises.

Of course, the market is changing rapidly, and any factor may lead to the change of the result, so we should analyze it in combination with the actual situation.