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The price of gold and its relationship with the oil and the dollar
July 29, 2015 in the versions Center Add comment
Oil prices are still falling apart globally registered low levels with continued concerns about the global supply increase Of crude oil in the market.
In parallel with the decline in oil prices Gold prices fell 4% to their lowest level in more than about 5 years, with a higher US dollar ahead of the Fed meeting.
The Many people wonder about the relationship between oil and gold prices, and is it a direct correlation or counterproductive? What is the link between the dollar and the price of gold price? The relationship between oil and gold oil is one of the commodities in the world, due to the rejoice in its features and elements have made them the most important commodity in the world until they have become the most important factors against which to evaluate the economies of countries, in addition to that they have a key role in political tensions, especially oil. and enjoy the gold being one of the most important and most precious metals Anchara, as well as the acquisition of gold is a permanent desire of individuals and groups as well as States, given the physical and moral value enjoyed by gold. sees most analysts existence of a strong relationship between gold and oil , and this relationship arising from their association with the US dollar on the one hand, and on the other hand, the fact that the price of oil is a relationship productivity of most of the goods it represents part of the cost of any commodity components, both represented in the cost of transportation or production, and therefore the occurrence of any changes in prices would affect the local and global economy through the creation of changes in the prices of domestic and global commodity whether the change to rise or to fall. The relationship between oil and gold positive correlation, meaning that the drop in oil prices necessarily mean the decline of gold prices and in a time when escalating oil prices was the price of gold moving in the same direction, and the rise of oil prices lead to higher toll income-producing countries, leading to high cost of living, which drives people to buy gold. Through the above it can be said that the relationship between oil and gold logical relationship, rise in oil prices, an increase in gold prices. The relationship between gold and the dollar in contrast to the relationship between oil and gold are considered the relationship between the latter and the dollar is an inverse relationship where it can Nsmehma articles Bdilten where demand for one increased when rises other price, and this relationship stems from the fact that gold is one of the most important hedging instruments against the risk of changes in exchange rate currency, where it can be for investors and dealers in the foreign exchange market to buy gold to cover the risks resulting from the weakness of the dollar, and by extension any other currencies. However, the value of the dollar is determined mainly through cashed rate in other currencies. The declining value of the dollar, which means that he falls for the major currencies in the world, and experts attributed this relationship to the policy that the United States enjoyed since the beginning of the seventies since the agreement ( Bretton Woods ) in 1945, who founded to link currencies to the dollar according to the base where an ounce of gold is equal to $ 33, this policy has led to raising the level of inflation globally and is still the global markets dependent on the US market During the current crisis, for example, tended value of the dollar to decline in many times, however the price of gold fell, and in times of Many of the US dollar rose, however, the price of gold continued to rise. This turmoil in the relationship between the value of the dollar and the gold price is the result of speculation on the gold operations in times of crisis; therefore, the demand for gold comes by the associated economic risks in the world of speculation, which is the main factor in the demand for gold at the moment.
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July 29, 2015 in the versions Center Add comment
Oil prices are still falling apart globally registered low levels with continued concerns about the global supply increase Of crude oil in the market.
In parallel with the decline in oil prices Gold prices fell 4% to their lowest level in more than about 5 years, with a higher US dollar ahead of the Fed meeting.
The Many people wonder about the relationship between oil and gold prices, and is it a direct correlation or counterproductive? What is the link between the dollar and the price of gold price? The relationship between oil and gold oil is one of the commodities in the world, due to the rejoice in its features and elements have made them the most important commodity in the world until they have become the most important factors against which to evaluate the economies of countries, in addition to that they have a key role in political tensions, especially oil. and enjoy the gold being one of the most important and most precious metals Anchara, as well as the acquisition of gold is a permanent desire of individuals and groups as well as States, given the physical and moral value enjoyed by gold. sees most analysts existence of a strong relationship between gold and oil , and this relationship arising from their association with the US dollar on the one hand, and on the other hand, the fact that the price of oil is a relationship productivity of most of the goods it represents part of the cost of any commodity components, both represented in the cost of transportation or production, and therefore the occurrence of any changes in prices would affect the local and global economy through the creation of changes in the prices of domestic and global commodity whether the change to rise or to fall. The relationship between oil and gold positive correlation, meaning that the drop in oil prices necessarily mean the decline of gold prices and in a time when escalating oil prices was the price of gold moving in the same direction, and the rise of oil prices lead to higher toll income-producing countries, leading to high cost of living, which drives people to buy gold. Through the above it can be said that the relationship between oil and gold logical relationship, rise in oil prices, an increase in gold prices. The relationship between gold and the dollar in contrast to the relationship between oil and gold are considered the relationship between the latter and the dollar is an inverse relationship where it can Nsmehma articles Bdilten where demand for one increased when rises other price, and this relationship stems from the fact that gold is one of the most important hedging instruments against the risk of changes in exchange rate currency, where it can be for investors and dealers in the foreign exchange market to buy gold to cover the risks resulting from the weakness of the dollar, and by extension any other currencies. However, the value of the dollar is determined mainly through cashed rate in other currencies. The declining value of the dollar, which means that he falls for the major currencies in the world, and experts attributed this relationship to the policy that the United States enjoyed since the beginning of the seventies since the agreement ( Bretton Woods ) in 1945, who founded to link currencies to the dollar according to the base where an ounce of gold is equal to $ 33, this policy has led to raising the level of inflation globally and is still the global markets dependent on the US market During the current crisis, for example, tended value of the dollar to decline in many times, however the price of gold fell, and in times of Many of the US dollar rose, however, the price of gold continued to rise. This turmoil in the relationship between the value of the dollar and the gold price is the result of speculation on the gold operations in times of crisis; therefore, the demand for gold comes by the associated economic risks in the world of speculation, which is the main factor in the demand for gold at the moment.
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