First of all, let's take a look at the definition of the dollar index: the dollar index is an index that comprehensively reflects the exchange rate of the dollar in the international foreign exchange market and is used to measure the degree of exchange rate changes of the dollar against a basket of currencies. It measures the strength of the US dollar by calculating the comprehensive rate of change between the US dollar and a selected basket of currencies, thus indirectly reflecting the changes in US export competitiveness and import costs. Obviously, the dollar index is a relative indicator. Its function is not so much to measure the value of the dollar as to measure whether the credit of the dollar is stronger or weaker than that of a basket of currencies.

There are many factors that affect the rise and fall of gold, and the dollar is only one of them. Under normal circumstances, we can judge the trend of gold according to the rise and fall of the dollar. Judging from the historical trend chart of the past eight years, the trend of gold and dollar index is almost like a reflection in the water. However, in the case of multiple factors at the same time, this overall situation will be broken, and the dollar and gold will rise and fall together! Since 2009, the price of gold has fluctuated with the US dollar for many times. Dollars and gold are safe-haven assets! In the general downturn of the world economy, the risk aversion of the market will dominate! Then there will be a phenomenon that the safe-haven currencies, the dollar and gold, will rise together! On the contrary, if the market risk appetite increases, the same decline will occur.

In addition, in terms of crude oil, the rise in crude oil prices is good for gold prices. Because rising crude oil prices will bring inflationary pressure, and gold, as a traditional investment tool to prevent inflation, is favored by many funds. In June 2005, the dollar strengthened, non-American currencies fell, and gold did not fall, but went out of an independent rising market. The reason is that the price of crude oil continued to rise in June, which became the focus of market attention, ignoring the pressure of the strong dollar on gold.