The relationship between the price of gold and AUD / USD and USD / CHF
Before we discuss further about the relationship between the movement of gold prices with the AUD / USD currency pair and USD / CHF it is necessary to say that the relationship between gold and the dollar is never in line both of them are always contradictory 🙁
Usually things that happen when the price movements of the Dollar are strengthened, the price of gold will decline and the opposite also applies 🙂 keep in mind this thing ….
The basic law that applies is that when a bad economy afflicts a lot of investors who throw away the Greenback (US Dollar) and buy gold.
And unlike other assets, gold always maintains its intrinsic value and always shines all the time …
Relationship between Gold and AUD / USD
Until now, the inverse relationship between the price of gold and the dollar (US Dollar) continues to occur only the things that influence it continue to change. And because the attractiveness of US Dollar as a safe haven (foreign exchange reserves) then when there are economic problems in the US or its currency, most investors will more often avoid it and also apply the opposite when economic growth leads to a positive direction.
At present Australia is the third largest gold producer in the world. And the movement of gold prices has a relationship with the price movement of the AUD / USD currency pair.
So gold has a positive relationship with the AUD / USD currency pair. When the gold price rises, the price of the AUD / USD currency pair will go up too. Likewise, when the price of gold falls, the price of the AUD / USD currency pair will go down too .
Is it still not convincing? The following is another example of correlation.
The relationship between the price of gold and USD / CHF
Just like the dollar, Swiss currency (CHF), Swiss Franc, has a very strong relationship with the movement of gold prices. By using the US Dollar base currency, the price of the USD / CHF currency pair will experience a significant increase when the gold price drops very significantly as well.
Vice versa, the currency pair will decrease when the price of gold rises. And unlike the Australian currency (AUD), which causes the Swiss currency (CHF), Swiss Franc, is strongly associated with the movement of gold prices more due to more than 25% of Swiss money supported by its gold reserves.
So gold has a negative relationship with USD / CHF, bro 🙂 When the price of gold rises, the price of the USD / CHF currency pair will go down and vice versa when the gold price drops, the price of the USD / CHF currency pair will rise.