When it comes to the US dollar. Nobody in the world would not know the great currency that was used as a global exchange medium, and most importantly, the dollar was the central currency in many foreign exchange. The countries recognized the most Because this is an important factor affecting the gold price because gold Is a guarantee Currency and reserve funds in each country
Although some countries will stop using gold as a reserve and instead hold the US dollar currency because holding the US dollar receives interest. And holding gold without interest itself However, the price of gold is still based on the US dollar price as before, because the US dollar is the largest and most common currency in the world. It is the largest currency in the world. Generally, the price of gold will increase. When the US dollar depreciates because the US dollar. And gold is a currency that is a medium of exchange as well (Currency) as the dollar is a reliable base currency, resulting in the price of gold and the dollar always running in the opposite direction like two tigers. You cannot stay in the same cave. When the value of the US dollar There are signs of weakness. Central banks of various countries Holding a US dollar currency risk diversification. By dividing the money to invest in other assets such as other currencies. Japanese Yen Other assets such as stocks, instruments, etc. But most of the time when this happens, each country will turn to the majority of gold, resulting in the gold price rising as well The depreciation of the dollar Inevitably, gold is a safe asset that can hold its value and support its price. Unlike the price of oil and other assets fluctuates because oil cannot support itself. In simple terms, the values themselves are different. Gold is more valuable in itself than oil. As a result, each country's silver flows flow into gold, resulting in a higher price of gold. As evidenced by recent announcements of QE (Quantitative Easing) measures, the dollar supply in the economy has dramatically increased, causing the dollar to weaken and fall sharply. People turned to buy more gold. Because buying gold hedges the value of the US dollar, the depreciation and the lower interest rates. You should follow news and announcements of the Federal Reserve Fed. To set a more accurate investment direction
It seems that gold is a guarantee of the economic stability of each country as well. And prevent currency fluctuations Nowadays, countries are accelerating to accumulate more gold as a national reserve because when the value of the US dollar is depreciated, weaker, worthless and volatile, gold will be a very good guarantee of the country's wealth. By considering the US Dollar Index when there is a crisis The world gold price will rise as investors will sway money from the US dollar. Come to buy gold because it is a safe place to stay for money. However, for all reasons and results, is gold really a thing that we should invest in? ..... ^ _ ^
