Usually, the dollar is negatively correlated with gold. This relationship is mainly manifested in two aspects. On the one hand, gold is denominated in dollars. Therefore, if the dollar falls, the value of gold itself remains unchanged. Therefore, the price of gold will rise. On the other hand, in the investment market, if the dollar strengthens, many investors will sell gold and chase the dollar, which will lead to a decline in the price of gold. On the contrary, if the dollar is weak, investors will sell dollars and invest in gold, and the price of gold will be firm at this time.

Dollar and gold, the impact of the dollar on the gold market mainly has two aspects. First, the dollar is the price mark currency in the international gold market, so it is negatively related to the price of gold. Assuming that the value of the gold price itself does not change and the dollar falls, the price of the gold price will rise. On the other hand, gold is an alternative investment tool for dollar assets. In fact, in the years before 2005, the continuous rise of gold prices was mainly influenced by the US Federal Reserve system.

Assuming that the value of gold itself has not changed, the dollar will fall and the price of gold will rise. On the other hand, gold is an alternative investment tool for dollar assets. In fact, in the years before 2005, one of the main factors for the rise of gold price was the sharp decline of the US dollar for three consecutive years. This is a negative correlation, mainly in the gold market and the dollar market.

The source of gold and the dollar relations:

The Bretton Woods system established by 1944 stipulates that the US dollar is the most important international reserve currency. The dollar is directly linked to gold, the currencies of all countries are linked to the dollar, and gold can be exchanged with the United States at the official price of $35 per ounce. This is what we usually call the "gold standard", which means that the currencies of all countries are based on gold.

But later, due to the revival of Europe and Japan, many countries used dollars to hedge gold; And the Vietnam war in the 1960 s led to the deterioration of the American economic situation, the collapse of the Bretton Woods system, and finally the IMF gave up this system.

Since the dollar is just a kind of paper money and has no value in itself, what is valuable is the corresponding amount of gold behind the paper money. Under normal circumstances, if there is corresponding gold, there will be corresponding paper money to exchange. The US dollar is the pillar of the current international monetary system, and the US dollar and gold are the most important reserve assets. The strength and stability of the US dollar weakened the status of gold as a reserve asset and its function of maintaining value.