As a central currency, once the dollar depreciates, it means that the prices of gold and oil will rise. The strength of the dollar lies in the performance of the American economy. Therefore, the prices of gold and oil can be manipulated to some extent, and oil often becomes a bargaining chip in political and economic negotiations.

Dollar exchange rate and gold price

Gold is a currency reserve. Although the dollar actually played the role of gold in the past, gold still has a certain degree of success in monetary policy. It is a means to deal with inflation and a substitute for the dollar. The main role of gold in the market is to reserve currency and hedge tools. At present, we can only weaken the reserve currency. Many countries in the European Union are selling gold, which has curbed the rise of gold prices to some extent. On the other hand, gold has become a preventive asset to prevent the decline of dollar assets. Therefore, the price of gold should be negatively correlated with the exchange rate of the US dollar, which is also proved by the actual market trend.

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