How does the exchange rate of US dollar affect gold futures
Post Time：2020-01-07 10:36:31 By：BG
I believe that we are all familiar with the history of the twentieth century. There are two world wars, sometimes the cold war, and various technological reforms. In a word, many things and changes have taken place in this century. Then you should all remember the Bretton Woods system, which is the beginning of the cold war between the Soviet Union and the United States, and also a system that has a direct link between the dollar and gold. It can be said that it was the original Bretton Woods system that made the dollar have such a deep connection with gold. So even after the collapse of the Bretton Woods system, the dollar still has a great impact on the value of gold today. As a kind of money that will never go out of date, gold is very popular in the market. If it is common people's home, they will choose to buy some gold to collect when the price of gold falls. If it is investors, they will normally choose to invest in gold related investments, such as gold futures. So gold futures are actually gold related transactions, which take gold as the trading object. Of course, don't think that gold is timeless money, investment is safe, investment in gold futures, although the profit is high, but there are certain risks, because it is affected by many factors. The influence of one of these factors, of course, is the exchange rate of the US dollar. As mentioned earlier, the US dollar has a very deep relationship with gold because of the Bretton Woods system. Therefore, gold affects it, and it also affects gold. The way that the US dollar affects gold is through the exchange rate.
So what is the impact of the US dollar exchange rate on gold futures? When the U.S. dollar exchange rate drops, gold will rise. Because the U.S. dollar exchange rate drops, it means the depreciation of the U.S. dollar. At this time, it's better to buy gold with the money instead of holding the devalued U.S. dollar. So at this time, because many people buy gold futures, but the gold is limited. In order to ensure the normal operation of gold trading, the gold futures will rise with the tide. So if the exchange rate of the US dollar becomes higher, and the gold futures will fall, the path is the same. If we want to explain it mathematically, this phenomenon is very consistent with negative correlation, and it is also a kind of mathematical function.
Well, the above is about the impact of the US dollar exchange rate on gold futures. I hope it can help you. It's very important to invest in the future. No matter how stable an investment is, we should consider all kinds of investment factors carefully, so that the investment is more likely to be profitable, more likely to be fruitful, and can be regarded as a successful investment.
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