Usually, the exchange rate of the US dollar is one of the important factors that affect the fluctuation of gold price. Generally, when the dollar in the gold market rises, the price of gold will fall; When the dollar fell, the price of gold rose. A strong dollar generally means that the domestic economic situation in the United States is good, domestic stocks and bonds in the United States will be sought after by investors, and the function of gold as a means of value storage will be weakened; The decline in the exchange rate of the US dollar is often related to inflation and the stock market downturn, and the value-preserving function of gold is once again reflected. This is because the depreciation of the dollar is often related to inflation, and the high value of gold will often stimulate the preservation of gold and the increase of speculative demand in the case of the depreciation of the dollar and the intensification of inflation. In August of 197 1 and February of 1973, the US government announced the depreciation of the US dollar twice. Influenced by the sharp drop in the exchange rate of the US dollar and inflation, the price of gold rose to the highest level in history at the beginning of 1980, exceeding $800 per ounce. Looking back on the history of the past 20 years, if the dollar strengthens against other western currencies, the price of gold in the international market will fall. If the dollar depreciates slightly, the price of gold will rise gradually.
Non-American currencies such as the euro and the yen are usually linked to gold. When non-US currencies strengthen against the US dollar, it means that the relative value of the US dollar is weakened, which may also lead to an increase in the price of gold.
The RMB exchange rate has not been liberalized by the China government, and the exchange rate is not completely determined by the money market, so it has little impact on gold.