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What is the impact of currency exchange rate on gold futures

Post Time:2020-01-07 10:37:39  By:BG

  What do you think about gold? Are they ornaments made of various kinds of gold, or are there gold houses in books? Or can I just think of money? Today we are going to talk about gold, but we are not talking about ornaments or collections made of gold, but about gold futures. Gold is not only valuable, but also not out of date. How can such a good money making thing not be used as an investment to earn more money? Gold futures is a way of investment, so since as a way of investment, there must be risks and will be affected by various factors. So today we mainly talk about the impact of currency exchange rate on gold.

  Before talking about the influence of currency exchange rate on gold, there is a very important point to talk about, that is, what is gold futures. As I said just now, gold futures is a way of investment. How is gold futures invested? Take a simple and easy to understand. Some ordinary people may not understand the systematic investment, but they also know that gold is valuable, and they also know that sometimes the price of gold is high, sometimes the price is low. So when the price of gold goes down, people will buy it, and then when the price of gold goes up, people will sell it, so that they can earn the difference. So gold futures is such an investment principle. But gold futures are more formal, systematic, and also need to take certain risks. But even so, many people are willing to invest in gold futures, after all, there are certain benefits. Then the introduction of gold futures is finished. Next, we will talk about the impact of currency exchange rate on gold futures.
  First of all, we need to understand that not all currency exchange rates can have an impact on gold futures. Only some major currencies in circulation in the world can affect gold futures. Then among the currencies that affect gold futures, the dollar has the greatest impact on gold futures. And it has a certain historical origin. Because in the Bretton Woods system during the cold war, the US dollar was directly linked to gold. Although the Bretton Woods system collapsed, the US dollar still has a close relationship with gold after that. Even today, the US dollar exchange rate has been closely related to gold futures, and has a profound impact. So how does it affect? For example, when the currency exchange rate falls, gold will appreciate, so when the currency exchange rate rises, gold will depreciate. Of course, it doesn't have to be, after all, only the influencing factors are not the decisive factors. So when the trend of gold is good enough, the impact of currency exchange rate on gold futures will be greatly reduced.

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