Hello, my friend, in some ways, the dollar and gold are negatively correlated. For gold, the dollar is an influential factor that must be paid attention to. There is often a negative correlation between the price of gold and the dollar, but at the same time, both gold and the dollar are safe-haven assets. Therefore, whether in the foreign exchange market or the gold market, people tend to associate them. There is a close relationship between the two because the price of gold is denominated in dollars, so it will be directly affected by dollars.

The rise and fall of the dollar will affect the change of gold supply and demand. For example, when the dollar rises (appreciates), investors in other countries will need more money to buy gold, which means that gold becomes more expensive at this time. This situation will curb consumption, reduce the number of investors buying gold and reduce the trading volume. As a result, gold fell.

When the dollar falls, investors in other countries need less money to buy gold. From their point of view, gold is cheap at this time. Therefore, a large number of investors will buy it, and the same money can buy more gold, which will stimulate demand, lead to an increase in demand for gold, and then push the price of gold higher.

Although the dollar and gold are closely linked, their respective ups and downs are affected by many factors. Therefore, other aspects need to be considered when analyzing. It is worth noting that the negative correlation between the dollar and gold is not excluded from the long-term trend and the short-term situation. For example, some time ago, the dollar and gold rose simultaneously. The reason for this is that both are safe-haven products, and the increase in market demand for safe haven may push the dollar and gold to rise simultaneously.