Although the dollar is not as stable as gold, its liquidity is much higher than that of gold. So the dollar is considered as the first currency, and gold is the second. When the international political situation is tense and uncertain, people will buy gold because they expect the price of gold to rise. But the currency held by most people is actually dollars. If the country needs to buy weapons or other materials from other countries during the war, it will also sell its gold for dollars. Therefore, the dollar will not necessarily rise during the period of political instability, but also depends on the trend of the dollar. Simply put, the dollar is strong and gold is weak; Gold is strong and the dollar is weak.

Usually, investors will give up dollars when they take gold, and they will also give up gold when they take dollars. Although gold itself is not legal tender, it still has its value and will not depreciate into scrap iron. If the dollar is strong and there is a great chance of appreciation, people will naturally chase it. On the contrary, when the dollar weakens in the foreign exchange market, the price of gold will strengthen.