jewelry chain wholesale recycled Why does the appreciation of the US dollar prompt the gold price to fall

silver jewelry wholesalers The US dollar has risen, indicating that the dollar has become valuable. Because the inherent value of the metal is unchanged, it has a certain value preservation function, and the US commodity futures and stocks are priced in the US dollar. Each unit can buy more gold. Relatively speaking, gold has fallen.

but the most essential supply relationship between the futures price is determined. Supply and demand relationship determines everything! Factors affecting futures price supply and demand are many aspects, including macroeconomic factors, interest rate levels, irresistible factors (disasters), and so on.

The golden thing is more special, it has the dual attributes of currency and commodity.
) Starting from the product attributes, aside the influence of other factors, when the US dollar rises, because gold is also priced in the US dollar, and the gold will fall. If the US dollar falls, each unit can only buy less gold. Relatively speaking, gold will rise. Generally, this situation will only appear in a short period of time. For example, when the dollar depreciates/value -added, it must be a large range!

) Starting from currency attributes, gold can be said to be the king of currency. As long as a large -scale economic crisis in the world appears, as the safest currency in the world, gold will be sought after by investors around the world. Regardless of whether the US dollar is added or depreciated, the price of gold will rise steadily.

The sentence induction: The price of gold is mainly changed as the market supply and demand relationship changes. The rise and fall of Miki is only one of the factors that affect the price. Supply and demand affects everything!

wholesales jewelry stores The US dollar exchange rate index is the first factor that affects the price of gold -this reflects the gold's monetary financial attributes
Gold is the stable foundation of the financial market, so it is always linked to the world's currency system. Gold was first as a stabilizer of currency and exchange rates, but when the exchange rate floating system entered the exchange rate floating system in the 1970s, the exchange rate in turn directly affected the price of gold. In the world's major currency exchange rate system, because the price of gold has been marked at the US dollar so far, the price of gold is mainly determined by the US dollar exchange rate. This is one of the important signs of gold that actually has currency or financial attributes.
The appreciation of the US dollar will promote the decline in gold prices, and the depreciation of the US dollar will promote the rise in gold prices. Generally speaking, the fundamental or economic explanation of this phenomenon is that the US dollar firmly represents the good domestic economic situation. The domestic stocks and bonds of the United States will be sought after by investors. Gold will be weakened as the function of value storage and investment. The decline in the exchange rate of the US dollar is often related to inflation and stock market downturn. The gold preservation function is once again reflected. When the depreciation of the US dollar and inflation are intensified, the increase in gold preservation and speculative demand is often stimulated. However, the actual performance of gold prices is not as simple as economics theory. For example, this century's stocks and bonds and commodity futures have already been negatively related to each other, and there have been rising big bull markets together. This is what traditional economics cannot be explained. mystery of". To put it bluntly, it is valuable in the US dollar, and there are fewer gold for the US dollar, and gold is not worthy.