. Before the 1970s, oil prices were monopolized by international oil companies of oil importing countries for a long time. After the establishment of the organization of Petroleum Exporting Countries (OPEC), the OPEC obtained the power of oil pricing. In general, dollar and crude oil are negatively correlated for a long time.

for a long time, the price of oil trading is mainly denominated in US dollars. The depreciation of the US dollar indicates that the real value of the US dollar is declining. So if you want to buy the same oil, you need to pay more US dollars. On the surface, it directly causes the price of oil to rise. If you don't rise, it means that the real price of oil denominated in US dollars drops. . Then we can trade three sheep for one pig. If the price of a sheep falls to $90 and the price of a pig remains the same, then we need four sheep to get a pig on the surface, pigs can exchange one more sheep. In fact, the actual value ratio between them has not changed however, in some cases, there is also a positive correlation.

if the trend of the US dollar is strong, it generally means that the domestic economic situation of the United States is good. The domestic stocks and bonds of the United States will be sought after by investors, and the function of gold as a means of value storage will be weakened. When the exchange rate of the US dollar drops, it is often related to inflation, the stock market downturn, etc., and the function of gold preservation is reflected again, while the gold price rises. Because the depreciation of the US dollar is often related to inflation, and the value of gold is relatively high, when the depreciation of the US dollar and inflation intensifies, it will often stimulate the increase of gold preservation and speculative demand.