First, after inflation in the United States, interest rates may rise, which is beneficial to the dollar, but the dollar and gold are sometimes antagonistic, that is, the dollar rises and gold falls, and vice versa.
Second, Europe may raise interest rates after inflation, which is beneficial to the euro. Usually, the euro is directly proportional to gold. This is not because the euro directly acts on gold, but because the euro is the biggest rival of the dollar, and the euro and the dollar are opposites. Euro goes up, dollar goes down, dollar goes down and gold goes up, and vice versa. In other words, the euro rose and gold rose, while the euro fell and gold fell.
Third, observe inflation from producer price index (PPI) and consumer price index (CPI). When the PPI rises, the central bank may raise interest rates to counter it, which is good for the country's currency. CPI rises, there is also inflationary pressure, and it will also raise interest rates, which is equally good. However, if the CPI is too high, it shows that when inflation has become a factor of economic instability, the central bank will have the risk of tightening monetary and fiscal policies, which will lead to uncertain economic prospects. Therefore, the excessive rise of this index is not welcomed by the market.
4. Gold can digest liquidity and make less paper money. This understanding is correct. In order to cope with inflation, some people will buy gold to preserve their value, because the currency will depreciate. The circulation of money will be reduced. The value of gold is that it is hard currency. Antiques and jade articles in Taiping and Shi Sheng are of great value, and gold is also of great value in times of famine and chaos.
The central bank sells gold. The central bank is the largest gold holder in the world. 1969 The official gold reserve was 36,458 tons, accounting for 42.6% of the total surface gold stock at that time. By 1998, the official gold reserve is about 34,000 tons, accounting for 24. 1% of the total mined gold stock. According to the current production capacity, this is equivalent to the world gold mineral output 13. Because the main use of gold has gradually changed from an important reserve asset to a metal raw material for jewelry production, either to improve the balance of payments or to curb the international gold price, the central bank's gold reserves have declined greatly in absolute and relative quantities in the past 30 years, and the decline in quantity mainly depends on the sale of gold reserves in the gold market. For example, the large-scale selling by the Bank of England, the Swiss National Bank and the International Monetary Fund to reduce gold reserves has become the main reason for the recent decline in gold prices in the international gold market.