To explain this problem, the three heroes need to introduce to you that gold was directly linked to the US dollar in the early days and was denominated in US dollars.
Now, even if the two are decoupled, the dollar still plays an important role in the price of gold. It can also be said that the price of gold depends on the US dollar index.
Now, even if the two are decoupled, the dollar still plays an important role in the price of gold. It can also be said that the price of gold depends on the US dollar index.
When the dollar appreciates, the price of gold will fall; When the dollar index falls, gold will rise;
This makes them negatively correlated, and it is almost certain that the Federal Reserve will cut interest rates this year. Once the interest rate is lowered, the yield of American bonds is linked to the Federal Reserve interest rate.
The bond interest rate is low, and the bond interest rate, especially the national debt interest rate, is considered as a risk-free interest rate, which is an important basis for determining the value of the local currency.
Simply put, interest rate is the price of money, which will inevitably lead to a sharp depreciation of the dollar. This expectation will naturally push up the price of gold.
The bond interest rate is low, and the bond interest rate, especially the national debt interest rate, is considered as a risk-free interest rate, which is an important basis for determining the value of the local currency.
Cutting interest rates is the central bank's strategy to increase market liquidity. By cutting interest rates, the central bank can reduce bank deposits, increase market investment and reduce the value of the local currency.
This will make investors reduce their investment in dollars and increase their investment in gold.
When fewer and fewer investors invest in currency derivatives, more and more people and funds will invest in gold.
It will inevitably lead to an increase in the price of gold.
When fewer and fewer investors invest in currency derivatives, more and more people and funds will invest in gold.