Affected by multiple factors, the international gold price continued its downward trend on the 14th, falling below the $2,600 per ounce mark, hitting a two-month low.
On November 14, the international gold price opened at $2,572.91 per ounce, reaching a high of $2,581.24 per ounce and a low of $2,555.22 per ounce, a drop of 0.58%, falling for five consecutive days. As of 15:00 on November 14, the international gold price was $2,555 per ounce, down nearly 7% from its historical high.
"With the implementation of the US election, there are many uncertain factors and geopolitical conflicts, which have led to a drop in gold prices." Li Yang, a senior gold investment analyst, said that the transfer of profit-making funds is also a reason for the continued decline in gold prices.
Affected by this, domestic gold prices, at the close of the afternoon of November 14, the closing price of Au9999 of the Shanghai Gold Exchange was 591.12 yuan/gram, down 1.98% on the day. The closing price of the main contract of Shanghai Gold was 593.10 yuan/gram, down 1.95% on the day. In addition, domestic jewelry gold prices have also been reduced, from 14 yuan to 8 yuan per gram.
And on the night of November 14th to 15th, gold and the US dollar rose simultaneously frequently! ! !
Normally, the US dollar index and gold prices have a negative correlation because gold is a dollar-denominated asset. However, under certain market conditions, the US dollar index and gold prices may rise at the same time. Here are some common situations:
Increased global uncertainty: When uncertainty increases, such as geopolitical crises, economic recessions, or global epidemics, investors will invest in safe-haven assets, pushing up the prices of the U.S. dollar and gold at the same time. The U.S. dollar is favored as a global reserve currency, while gold is a traditional safe-haven asset.
High inflation environment: When inflation is high and inflationary pressure continues to rise, investors may choose gold as a tool to fight inflation. At the same time, the United States may tighten monetary policy (raise interest rates), leading to a stronger dollar. This will cause gold and the US dollar index to rise simultaneously in an inflationary environment.
Poor performance of major economies: If the US economic growth outperforms other major economies (such as the Eurozone, Japan, etc.), it may lead to a stronger US dollar. At the same time, global economic uncertainty may increase demand for gold, leading to an increase in gold prices. This usually happens when other major economies are facing difficulties, prompting capital to flow into the US and the gold market.
Rising safe-haven demand: Some investors buy the U.S. dollar and gold to hedge risks when risk sentiment is high. Such safe-haven flows often lead to a simultaneous rise in the U.S. dollar and gold, especially when the market expects global economic conditions to deteriorate.
Under these scenarios, the US dollar and gold will break through the traditional negative correlation and rise in the same direction in the short term.
