First, the dollar and the international price of gold between the role of the mechanism is as follows:

(a) gold and the dollar foreign exchange as people's investment choice of important financial assets tools, each with different characteristics. The dollar is, in essence, a kind of non-cash credit currency, is a kind of debt financial assets. Gold, in the credit era, is undoubtedly a financial asset, and is one of the few non-debt financial assets.

(ii) The United States dollar is the internationally recognized hard currency, gold demonetization for more than 30 years, it and gold together become the most trusted international reserves. There is a relationship between the two, that is to say, the weakening of the dollar, the price of gold will rise.

(C) the world gold market are generally to the dollar price, when the dollar depreciation, in the gold of the dollar price does not change or change is very small in the case of other currencies measured by the price of gold is also manifested as a decline, thus stimulating the non-American countries on the increase in demand for gold, and ultimately make the international price of gold with the rise.

(D) the United States GDP accounted for the world GDP 1/4 strong, foreign trade in the world first, the world economy by its influence, and the price of gold and the world economy is good or bad into an inverse proportion relationship, so the United States economy and the dollar exchange rate directly affects the international gold prices.

Thus, the dollar strength and weakness and international gold price is basically the reverse change relationship, and is the former for the latter for the fruit of the influence and be influenced, decide and be determined by the relationship.

Second, the dollar exchange rate and gold price mechanism plays a role in the premise

The role of the dollar exchange rate and the price of gold between the mechanism of normal manifestation is to have certain preconditions. This precondition is the important factors affecting the price of gold, including the international geopolitical situation remains stable, the international economic and financial situation is stable, no major turbulence.

Only when the international geopolitical, international economic situation, the international financial situation are in relative stability, analyze the exchange rate fluctuations and the impact of the gold price is meaningful, the exchange rate changes to become a determinant of the price of gold. Ignore the existence of the priority level above the exchange rate level that affects the price of gold, to judge the impact of exchange rate fluctuations on the price of gold is there is a misunderstanding.