The exchange rate is the exchange relationship between two currencies, and the exchange rate of RMB against foreign currency is the external value of RMB. In the modern financial market, in addition to their own role, many investors make use of the difference of exchange rate to invest and speculate, and the change of exchange rate will directly affect other markets. Today we will talk about the relationship between exchange rate and gold: the impact of RMB appreciation and depreciation on the price of gold.

The Influence of RMB Appreciation and Depreciation on Gold

First of all, we need to understand that the appreciation and depreciation of the renminbi have no direct impact on the price of gold, but are related to the appreciation and depreciation of the US dollar. The price of gold is linked to the dollar, which is embodied in the following aspects: the dollar rises, gold falls, the dollar falls, and gold rises.

1, RMB appreciation

The appreciation of the renminbi is equivalent to the renminbi being more valuable against the US dollar. You can change the same RMB into more dollars. The depreciation of the dollar against the RMB will affect the suppression of the dollar to a certain extent, which may further strengthen the trend of gold.

For investors who hold dollars in their hands and profit from speculating on exchange rate differences, the value of dollars has depreciated. If they have used the money to buy domestic gold, then they will buy less gold.

2. RMB depreciation

On the other hand, if the RMB depreciates, it means that the RMB is even less valuable against the US dollar. You can exchange the same RMB for less dollars. The appreciation of the US dollar against the RMB will affect the price of the US dollar to a certain extent, thus weakening the trend of gold and suppressing the price of gold.

For investors who take advantage of the exchange rate difference to speculate and make profits with dollars in their hands, if they buy gold at home, they will buy more gold than the appreciation of the dollar.

The above is the impact of RMB appreciation and depreciation on gold. I hope it helps you. Warm reminder, financial management is risky and investment needs to be cautious.