The foreign exchange market and gold market have attracted investors' attention because of their relatively perfect, fair and just investment opportunities, and more and more investors have joined the foreign exchange and gold markets. However, the foreign exchange market and the gold market are changing, and the benefits and risks are like twin brothers. There is an unexpected "intimate relationship" between them. Knowing the interaction and function of the two markets, you may find many new investment opportunities.

Interaction between foreign exchange and gold

Both the foreign exchange market and the gold market are affected by some similar factors. At present, the trend of globalization and integration of the world economy is constantly strengthening, which has brought about the great integration of the world financial markets, and international capital can flow freely and quickly between markets, thus further linking the markets all over the world closely, and the price fluctuations of each market are closely related to each other. For the world's largest market-foreign exchange market (measured by trading volume) and the most historic gold market, they are inextricably linked, and their respective price fluctuations and market changes have a certain impact on each other's markets.

How does the foreign exchange market affect the gold market? Since the world gold market is priced in US dollars, the fluctuation of the US dollar exchange rate in the foreign exchange market has a great influence on the gold price. According to the historical statistics of recent 10 years, there is a negative correlation between the gold price and the US dollar exchange rate of about 80%. You can go to ECN trade in Australia to actively learn relevant knowledge and technology.