"As the US dollar continues to strengthen, the US dollar index continues to hit new highs, the prices of major commodities in the world have weakened, and the price of gold has fallen back." Wang Jun, director of the Forum of China's Chief Economists, said in an interview that as long as inflation in the United States is not effectively alleviated and the US dollar index does not show a downward trend line, the situation of falling gold prices will continue.
According to Xu Weihong, vice president of Yongxing Securities, the main function of gold in the traditional sense is to fight inflation together with precious metals. He told the International Business Daily that gold should be a good investment target in the case of high inflation in developed economies in Europe and America this year. However, after the subprime mortgage crisis in 2008, European and American countries issued a large number of currencies for short-term economic growth, making gold more and more a trading asset, which largely lost the attributes of traditional precious metals and money markets.