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How the US dollar exchange rate affects gold futures?

Post Time:2020-01-09 18:15:34  By:BG

  I believe that everyone is familiar with the history of the twentieth century. It is another World War, sometimes the Cold War, and various technical reforms. In short, many things happened and many changes happened in the century. Then everyone should remember the Bretton Woods system. This was the beginning of the Cold War between the Soviet Union and the United States. It was also a system that directly linked the US dollar to gold.

  It can be said that it was because of the original Bretton Woods system that the US dollar had such a deep connection with gold. So even after the Bretton Woods system collapsed, the impact of the US dollar on the value of gold is still very large. Gold, as a money that will never be out of date, is very popular in the market. If it is an ordinary people's home, they will choose to buy some gold to go home to collect when the price of gold drops. If it is an investor, they will usually choose to invest in gold, such as gold futures.
  Then gold futures are actually transactions related to gold, and it uses gold as a trading object. Of course, don't think that gold is outdated money. Investment is safe. Although investing in gold futures has high profits, there are certain risks because it is affected by many factors. The influence of one of these factors is, of course, the US dollar exchange rate. As mentioned earlier, the US dollar has a deep relationship with gold due to the Bretton Woods system, so gold affects it, it also affects gold, and the way the dollar affects gold is through Exchange rate impact.
  So what is the impact of the US dollar exchange rate on gold futures? When the exchange rate of the US dollar has fallen, gold will appreciate. Because the exchange rate of the US dollar has fallen, it is thought that the dollar is depreciating. At this time, instead of holding the devalued dollar, it is better to use the money to buy gold. Well, at this time, many people buy gold futures, but this gold is limited. In order to ensure the normal conduct of gold trading, gold futures have also risen with the rise. Then if the dollar exchange rate becomes higher, on the contrary, gold futures will fall, and the path is the same. If you want to explain it with mathematics, 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 everyone. It is very important to make an investment and look forward to the future. No matter how secure an investment is, you should consider all kinds of investment factors so that the investment is more likely to yield, it is more likely to be rewarded, and it can be calculated. This is a successful investment.

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