Petroleum, known as the "black gold" of the earth, is the driving force of economic development and an indispensable earth energy. As the two main types of commodity investment, there is a close connection between gold and oil.

The positive correlation between gold and oil prices is reflected in the medium and long-term trends, and there will be differences in short-term trends and overall fluctuations. Both gold and oil are commodities priced in the U.S. dollar, and fluctuations in the U.S. dollar will affect the same-directional fluctuations of gold and crude oil. Generally speaking, when the U.S. dollar rises, the prices of gold and crude oil fall, and when the U.S. dollar falls, the prices of gold and crude oil rise.

Therefore, under normal circumstances, gold and oil prices are positively correlated. For example, a rise in oil prices will also push up the price of gold in the market, and a fall in oil prices will also drive down the price of gold.

However, there are some special exceptions, that is, people’s panic will interfere with the original positive correlation. Just as at present, Saudi Arabia took the lead in cutting prices to start an oil price war on a global scale, which intensified people’s panic and formed one aspect. Lower oil prices, on the other hand, a large influx of funds into the domestic market has continued to rise.

In summary, on the basis of grasping the basic relationship between oil and gold prices, and combining specific analysis of current market details, people can accurately and comprehensively grasp the development trends of gold and the international oil market.

The above is about the relevant impact of changes in international oil prices on the gold market. Investors can pay attention to the professional gold investment platform JRFX to learn more about the gold investment market.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

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