Cryptocurrency Q&A
How does DXY affect gold?
How does DXY affect gold?
Martina
Fri Oct 25 2024
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5 answers
999
I'm curious about the relationship between DXY and gold. Specifically, I want to understand how changes in the DXY index might impact the price of gold. Can someone explain this to me?
5 answers
LightWaveMystic
Sun Oct 27 2024
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Chloe_emma_researcher
Sun Oct 27 2024
The relationship between the US Dollar Index (DXY) and gold prices is characterized by a negative correlation.
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Andrea
Sun Oct 27 2024
This negative correlation can be attributed to two main reasons. Firstly, gold is priced in US dollars. Therefore, any appreciation in the value of the US dollar has a direct impact on the cost of gold for investors who use other currencies.
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DondaejiDelightfulCharmingSmileJoy
Sun Oct 27 2024
When the US dollar strengthens, it becomes more expensive for investors in other currencies to purchase gold. This increase in cost can lead to a decrease in demand for gold as investors may look for other, more affordable investment options.
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Arianna
Sun Oct 27 2024
As demand for gold decreases, it places downward pressure on gold prices. This is because the law of supply and demand dictates that prices fall when demand is low.
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