What is the relationship between gold, dollars and crude oil prices?
The relationship between crude oil and the dollar is different from that of gold. The price of gold is influenced by the dollar. CrudeThe price and the price of the dollar reflect an interactive relationship. Crude oil prices, the world economy will be affected, including the United States, the world's largest oil consuming countries. Rising oil prices brought about by the upward pressure on the dollar will bring downward pressure, and the direct result of the depreciation of the dollar is the dollar denominated crude oil prices also increased. Of course, in turn, the decline in oil prices, the economy is a good signal, people's confidence in the U.S. economy will push up the dollar, resulting in lower oil prices. According to expert estimates, the correlation coefficient between crude oil prices and the U.S. dollar exchange rate is -0.7. In other words, high oil prices tend to appear and the weak dollar. Therefore, the dollar trendAnd the price of crude oil should be in the direction of the relationship.
There is also a relationship between crude oil and gold prices, because there is a bond between them. International crude oil and gold are denominated in dollars. Therefore, crude oil, gold and the dollar is a negative correlation, so the relationship between crude oil and gold is positive, as closely related to or not, it depends on the specific circumstances.
If the dollar is strong, the general representative of the domestic economic situation is good, the domestic stock and bond investors to the gold will be sought, weakened as a store of value function; when the dollar declines, often with inflation, such as the stock market has closed, gold hedging function of gold rose again and. Because the depreciation of the dollar is often associated with inflation, and the higher the value of gold, the dollar devaluation and inflation tends to stimulate the increase in gold hedging and speculative demand. In August 1971 and February 1973, two times the U.S. government announced the devaluation of the dollar, the dollar fell sharply in effect, inflation and other factors, the price of gold in early 1980 rose to the highest level in history, breaking the $800 / ounce.
Generally speaking, the price of gold is negatively correlated with the dollar, and in some cases, there is a positive correlation.
